Find equation linking planned aggregate expenditure output


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.

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Microeconomics: Find equation linking planned aggregate expenditure output
Reference No:- TGS065150

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