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The equations for the AD and AS curves are given by: AD : YAD = 710 − 30P + 5G AS : YAS = 10 + 5P − 2Poil where Y is real GDP, P is the price level, G is the government purchases, and Poil is the world price of oil. a) What is the value of the simple multiplier? b) Write down the equilibrium condition. c) Solve for the equilibrium value of real GDP and the price level (hint: take G and Poil as known variables).

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