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A Keynesian economy is described by the following equations.Cd= 250 + 0.5(Y – T) – 250rId= 250 – 250rG = 300T = 300L = 0.

A Keynesian economy is described by the following equations.Cd= 250 + 0.5(Y – T) – 250rId= 250 – 250rG = 300T = 300L = 0.5Y – 500r + πeM = 3000Y = 1250πe= 0(a) Calculate the values of the real interest rate, the price level, consumption, and investment for theeconomy in general equilibrium

 

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