Assume a model economy with the following parameters: C= 100+0.25Yd I=100+0.5Y-3000i G=125 T=100 (M/P)d= 6Y-24000i (M/P)s=4500 Solve for the equilibrium real output and equilibrium interest rate
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Assume a model economy with the following parameters:
C= 100+0.25Yd
I=100+0.5Y-3000i
G=125
T=100
(M/P)d= 6Y-24000i
(M/P)s=4500
Solve for the equilibrium real output and equilibrium interest rate.
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