The following equations describe an economy.Y=C+I+G.C = 120 +0.5(Y-T).I= 100 - 10r.G = 50.T = 40.(M/P) d = Y - 20r.M = 600.P = 2.1. What are the equilibrium level of incomeand the equilibrium interest rate?

The equilibrium level of income is the point at which a business is able to sell all of the goods it…

Answered: (M/P) d=Y-20r. M = 600. P = 2. 1. What…

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(M/P) d=Y-20r. M = 600. P = 2. 1. What are the equilibrium level of income and the equilibrium interest rate?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section14.4: Money And Interest Rates

Problem 1ST

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Question

The following equations describe an economy.
Y=C+I+G.
C = 120 +0.5(Y-T).
I= 100 - 10r.
G = 50.
T = 40.
(M/P) d = Y - 20r.
M = 600.
P = 2.
1. What are the equilibrium level of income
and the equilibrium interest rate?

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