Hey, just want to know how do we do this exercise thank you!
Suppose the monetary policy curve is given by r = 1.5 + 0.751(pie) , and the IS curve is given by Y =13-r
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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Sep 21, 2019EXPERT
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