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Consider a Keynesian consumption function with desired consumption equal to 0.9 Y, where Y is income. Government purchases are $1000, net exports are zero, and desired investment varies with real interest rate according to the following schedule: Assume the interest rate adjusts so that the economy gets to equilibrium. Equilibrium output at full employment is $50,000. Find the values of consumption, investment, and the real interest rate at full-employment equilibrium.
Impasse
A situation or point in a process where progress is impossible or obstructed, often requiring an alternative approach or solution.
Maturation
The process of development and growth, which may refer to physical, psychological, or emotional changes across the lifespan.
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A group of therapeutic approaches that emphasize the role of personal experience and emotional expression in the healing process.
Psychoanalytic
A therapeutic approach centered on understanding unconscious processes as they are manifested in a person's behavior.
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