Consider the following IS-IR-PC model: Y = 99 -0.2*r r = 3 + 4*(pi-pi*) pi= pi^e + 0.11*(Y-Y*) where Y*= 100, pi^e = 1 and pi* = 2. Find equilibrium output. (State your answer to 2 decimal places.)

Consider the following IS-IR-PC model: Y = 99 -0.2r r = 3 + 4(pi-pi) pi= pi^e + 0.11(Y-Y) where Y= 100, pi^e = 1 and pi* = 2. Find equilibrium output. (State your answer to 2 decimal places.)

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

Consider the following IS-IR-PC model:
Y = 99 -0.2*r
r = 3 + 4*(pi - pi*)
pi= pi^e + 0.11*(Y-Y*)
where Y*= 100, pi^e = 1 and pi* = 2.
Find equilibrium output.
(State your answer to 2 decimal places.)

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