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Answer to Question #96429 in Macroeconomics for vainikolo sisifa
Question #96429
c) What are the equilibrium levels of income (Yo) and interest rate (io) (2 marks)
Expert's answer
Equilibrium level of income is when the aggregate supply and aggregate demand are equal. This means GDP is equal to the total expenditure. On the other hand, equilibrium rate of interest is when demand for money and supply for money are equal.
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