you will WUIR WILIn he er to Caiculate a maCr Igebra. The steps are: ) find the IS equation E) find the MP equation ) combine them by substituting the r value from the MP equation into the IS equation Assume C = 1 + 0.75Y - 0.5T - 25r, I = 19 - 75r, G = 12, T = 14, the average FFR = 0.05, expected nflation is 3%, the risk premium is 4%, and potential output is 80. What is the output gap in the nacroeconomic equilibrium?

you will WUIR WILIn he er to Caiculate a maCr Igebra. The steps are: ) find the IS equation E) find the MP equation ) combine them by substituting the r value from the MP equation into the IS equation Assume C = 1 + 0.75Y - 0.5T - 25r, I = 19 - 75r, G = 12, T = 14, the average FFR = 0.05, expected nflation is 3%, the risk premium is 4%, and potential output is 80. What is the output gap in the nacroeconomic equilibrium?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 8E

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