Suppose that the aggregate expenditure curve

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Suppose that the aggregate expenditure curve can be expressed algebraically as AE=3,000 - 2,000r where AE is aggregate expenditures and r is the real interest rate expressed as decimal. You check the website of the Congressional Budget office and learn that the level of potential output is 2,900. What is the long-run real interest rate?

Reference no: EM131101525

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