Answered: 1. The Following equations describe an…

1. The Following equations describe an economy: Y=C+I+G C = 240 +0.5(Y-T) I = 200-10r G = 100 T = 80 (M/P)d=Y-20r M = 1200 P = 4 What are the Equilibrium level of income and the real intere

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 5PA

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Question

1. The Following equations describe an economy:
Y=C+I+G
C = 240 +0.5(Y-T)
I = 200-10r
G = 100
T = 80
(M/P)d=Y-20r
M = 1200
P = 4
What are the Equilibrium level of income and the real interest rate.

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