For the economy described as bellow, find a numerical equation relating planned aggregate expenditure or demand (Z) to o

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For The Economy Described As Bellow Find A Numerical Equation Relating Planned Aggregate Expenditure Or Demand Z To O 1 (29.39 KiB) Viewed 22 times

For the economy described as bellow, find a numerical equation relating planned aggregate expenditure or demand (Z) to output (Y) and to the real interest rate (r), and find the multiplier (m). At what value should the Fed set the real interest rate to eliminate any output gap why potential output is Y*₁ = 40,000? At what value should the Fed set the real interest rate to eliminate any output gap why potential output is Y*2 = 30,000? (Show it also using graphical analysis) C=14,400+ 0.8(Y-T)-40,000r IP = 8,000-20,000r G=7,800 NX = 1,800 T = 8,000 Y*₁ = 40,000 Y*2 = 30,000