Assume the short-run aggregate supply curve can be expressed algebraically as Y = 3,000 + 3,000π and the dynamic aggregate demand curve can be written as Y = 3,350 – 1,000π.
Find the numerical value for equilibrium output, Y, in the short run.
Instruction: Round your answer to the nearest whole number.
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Find the numerical value, in percent, for the short-run inflation rate, π.
Instruction: Round your answers to 1 decimal place.
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