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Consider the Following Aggregate Demand Curve Y = 22-1p and a Short-Run

Question 108

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Consider the following aggregate demand curve Y = 22-1p and a short-run aggregate supply curve given by: p = 4 + 3(Y - 10). Find the equilibrium output and inflation rate.

Correct Answer:

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Y = 22 - pi. Substitute in pi from the s...

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