Ae is aggregate expenditures and r is the real interest, Financial Management

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Ae is aggregate expenditures and r is the real interest

Suppose that the aggregate expenditure curve can be expressed algebraically as

Where AE is aggregate expenditures and r is the real interest rate expressed as a decimal. You check the website of the Congressional Budget Office and learn that the level of potential output is 2,900. What is the long-run real interest rate?

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Financial Management: Ae is aggregate expenditures and r is the real interest

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Financial Management: Ae is aggregate expenditures and r is the real interest

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