Question: Suppose the aggregate demand (AD) function for a hypothetical economy is given by AD = 5000 - 50P, where P is the price level. The

Suppose the aggregate demand (AD) function for a hypothetical economy is given by AD = 5000 - 50P, where P is the price level. The economy is in equilibrium when the aggregate demand equals the aggregate supply (AS). The AS function for the economy is given by AS = 1000 + 1000P. Calculate the equilibrium price level and output level in this economy.

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