Suppose that the aggregate expenditure curve can be


Suppose that the aggregate expenditure curve can be expressed algebraically as AE=3,000 - 2,000r where AE is aggregate expenditures and r is the real interest rate expressed as 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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Business Economics: Suppose that the aggregate expenditure curve can be
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