Question: Only one quick question: . What is the value of Y* in this economy? What is the initial equilibrium value of P*? Consider the AD-AS

Only one quick question:

. What is the value of Y* in this economy? What is the initial equilibrium value of P*? Consider the AD-AS model of the economy where the expressions for AD and AS curves are, respectively, P P 600 0.5Y P_1 + 0.5(Y Y*) Where Y is real income, Y* is fullemployment income, and P_1 is the price level in the previous period. The economy is originally in longrun equilibrium i.e, real income is equal to full employment income in period 0 and P_1 = 100

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