Consider the following information about a hypothetical, Microeconomics

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Consider the following information about a hypothetical

Consider the following information about a hypothetical economy:

C= 12500+ 0.8(Y-T)
I= 2000 - 100r
G= 2500; T= 3125
M=17940000; P=120
L(r,Y)= 10000 + 2Y- 100r

The real interest rate, r, above is in percent already (i.e. r = 10 means 10%).Calculate the equilibrium value of output and interest rates.

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Microeconomics: Consider the following information about a hypothetical

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Microeconomics: Consider the following information about a hypothetical

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