Suppose that,in an economy,ADI = 5,000 + 0.75 Y - 10,000r,and the central bank acts according to the following monetary policy rule:
If inflation is 3%,the central bank will set a real interest rate of ________%,and short-run equilibrium output will be equal to _________.
A) 2;19,200
B) 3;20,000
C) 3;18,800
D) 4;18,000
E) 4;18,400

Question

Suppose that,in an economy,ADI = 5,000 + 0.75 Y - 10,000r,and the central bank acts according to the following monetary policy rule: 
If inflation is 3%,the central bank will set a real interest rate of ________%,and short-run equilibrium output will be equal to _________.
A) 2;19,200 
B) 3;20,000 
C) 3;18,800 
D) 4;18,000 
E) 4;18,400

Quizplus · Accepted Answer

The Answer of Suppose that,in an economy,ADI = 5,000 + 0.75 Y - 10,000r,and the central bank acts according to the following monetary policy rule: 
If inflation is 3%,the central bank will set a real interest rate of ________%,and short-run equilibrium output will be equal to _________.
A) 2;19,200 
B) 3;20,000 
C) 3;18,800 
D) 4;18,000 
E) 4;18,400

Suppose That,in an Economy,ADI = 5,000 + 0