kthe3148 kthe3148

25-05-2023
Business

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Consider the following IS-IR model:
Y = C + I + G_0
C = 700 + 0.85(Y-T_0)
I = 400 - 0.5r
r = r^{CB} = 9
where G_0 = 311 and T_0 = 288.
Find the equilibrium level of output.
(State your answer to 2 decimal places.)

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