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 a decimal. You check the website of the Congressional Budget Office and learn that the level of potential output is 2,760. What is the long-run real interest rate?
Instructions: Round your answer to the nearest tenth (1 decimal place).
The long-run real interest rate is______ %.