Q3. An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by
Cd=3000-2000r+0.10y rd =1000-4000r
where Y is output and r is the real interest rate. The real interest rate that clears the goods market is equal to__(36)__.
where Y is output and r is the real interest rate. The real interest rate that clears the goods market is equal to__(36)__.