The IS Curve Is Y = 20 - 1

question 58

Multiple Choice

The IS curve is Y = 20 - 1.5r,and the aggregate demand curve is Y = 15.5 - 0.3π.When the inflation rate is 3 percent,output is ________.

• A)20
• B)14.6
• C)9.5
• D)3.6
• E)none of the above

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