7. Given the following: C(YT) 200+ 0.75(Y-T) I(r) = 80 - 20r L(r,Y)=Y-90r G = 200 T = 75 M = 2500 P = 4 = c) What is the equilibrium output level Y*? d) What is the equilibrium interest rate r*?
7. Given the following: C(YT) 200+ 0.75(Y-T) I(r) = 80 - 20r L(r,Y)=Y-90r G = 200 T = 75 M = 2500 P = 4 = c) What is the equilibrium output level Y*? d) What is the equilibrium interest rate r*?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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ANSWER BOTH C & D
![7. Given the following:
C(YT) = 200 +0.75(Y – T)
I(r) = 80 - 20r
L(r,Y)=Y-90r
G = 200
T = 75
M = 2500
P = 4
c) What is the equilibrium output level Y*?
d) What is the equilibrium interest rate r*?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa83f96d-75bc-4e3a-9455-d22d0099053d%2Fc0be5caa-8406-4261-8a60-d8456c32f217%2F4p5tu4c_processed.png&w=3840&q=75)
Transcribed Image Text:7. Given the following:
C(YT) = 200 +0.75(Y – T)
I(r) = 80 - 20r
L(r,Y)=Y-90r
G = 200
T = 75
M = 2500
P = 4
c) What is the equilibrium output level Y*?
d) What is the equilibrium interest rate r*?
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