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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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