(Answered) Expression for the aggregate demand curve

Economics

Problem: Suppose the monetary policy curve is given by r = 1.5 + 0.751(pie) , and the IS curve is given by Y =13-r. Explain your answers and provides examples.

Required:

a) Calculate an expression for the aggregate demand curve.

b) Calculate the real interest rate and aggregate output when the inflation rate is 2%, 3%, and 4%.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91812325
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