1. 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 ______________ 

    • 9 years ago
    Equations
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      28_28_28_equations.docx