An economy is described by the following equations:
C = 2,600 + 0.8 (Y-T)-10,000r
IP = 2000-10,000r
G = 2,200
NX = -400
T = 3,000
The real interest rate is set according to the MPR. Assume r*=.05, g=1.0, pi=.02, and pi*=.02
a. Find a numerical equation linking planned aggregate expenditure to output.