00:01
So here we want to think about macroe equilibrium and we're given a whole bunch of information.
00:05
We're given a consumption function, right, 200 minus 0 .5y minus t.
00:11
We're given an investment function, 1 ,000 minus 200 r.
00:15
We're given a g, 300, right? and we're also given a money market.
00:21
Real balances demand is equal to 0 .5y minus 100 r, sorry.
00:27
And real balances are equal to 800.
00:31
So there are two equilibrium conditions, right? the first one is y equals c plus i plus g.
00:37
The second one is that m over p demand it has to equal m over p supplied.
00:43
So we're going to get two equations in two unknowns, right? i'm going to get y equals 200 plus 0 .5 y minus t plus 1 ,000 minus 200 ,000 minus 200, plus 300 and then i'm going to get 0 .5y minus 100 r is equal to 800 so if i'm going to rearrange this top one i'll bring the y to the side i get 0 .5 y is equal to group the constants 1500 minus 0 .5 t minus 200 r now notice that i can write both of these in terms of 0 .5 y, right? so this tells me i can equate the 0 .5 y's and i get 1500 minus 0 .5 t.
01:37
I don't know what t is.
01:39
Oh, t is 200...