In a certain economy, the components of aggregate spending are given by: C = 500 + 0.8(Y - T) - 300rI = 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 5 percent?
A. 3,775
B. 1,359
C. 944
D. 3,810
Answer: A
Economics
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