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 4 percent?

A. 1,372
B. 3,810
C. 3,860
D. 762


Answer: B

Economics

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