Numerical equation relating planned aggregate expenditure to output.

  An economy is described by the following equations: C = 1000 + 0.6(Y-T) – 1500r Ip = 700 – 1500r G = 1700 NX = 100 T = 900 Y* = 6650 The real interest rate, expressed as a decimal, is 0.05. 1) Find a numerical equation relating planned aggregate expenditure to output. 2) Using a table or algebra, solve for short-run equilibrium output. 3) Show your results graphically using Keynesian-cross diagram. 4) What real interest rate should the Fed set to bring the economy to full employment? 5) What if Y* = 6275? (repeat 4)