Question
Consider an economy with the following characteristics. Aggregate expenditures: • ? = 250 + 0.5(? −...
Consider an economy with the following characteristics. Aggregate expenditures: •
? = 250 + 0.5(? − 100) •
? = 150 − 1000? •
? = 200
?? = 50
Money Market: •
Money Demand: 2000 + 2? − 4000? •
Money Supply: ?/? = 3000
Compute the equilibrium GDP and interest rate
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