Calculate the equilibrium output and interest rate

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Reference no: EM131242456

The following equations describe the macro-economy:

Consumption function: C = 50 + 0.5(Y-T)

Taxes: T = 0.2Y

Government spending: G = 100

Investment: 200 - 10000i

Real Money Supply: M/P = 100

Real Money demand: M^d / P = 2Y - 20000i

Calculate the equilibrium output and interest rate.

Reference no: EM131242456

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