Determine the equilibrium levels of real output, Microeconomics

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Determine the equilibrium levels of real output

Suppose that the following equations describe an economy. ( C, I, G, T and Y are measured in billions of dollars, and r is measured as a percent; for example, r = 10 = 10%):

C = 170 + 0.6 ( Y - T)

T = 200

I = 100 - 4r

G = 350

(M/P)d = L = 0.75Y - 6r

Ms/P = 735

a. What is the equilibrium levels of real output.

b. What is the equilibrium real interest rate.

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Microeconomics: Determine the equilibrium levels of real output

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Microeconomics: Determine the equilibrium levels of real output

Reference No:- TGS0515919

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Determine the equilibrium levels of real output

Reference No:- TGS0515919

Recent Questions Asked Microeconomics

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Q : Accountant allocate for depreciation-amortization problem

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