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Consider an economy with the following IS and LM curves
Y= 4350-800r+2G-T
(M/P)= 0.5Y - 200r
Suppose that T= 450, G=450 and M=900.
Required
a) Find an equation for the aggregate demand curve.
b) If the full employment level of output is Y=46000, what are the equilibrium value for r and p?
Can you help me to solve this. I don't understand the math. Monopolist faces a demand curve given by
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