CFA CFA Level 1 Aggregate Demand Equation

Aggregate Demand Equation

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    • Avatar of cfastafcfastaf
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        • CFA Level 1
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        Can anyone help solve this equation just don’t understand the steps to get to the answer:

        Y=4500/P+625+87.5[(5821.43-Y)/28.57]

        The answer is Y=1107.69/P+4542.31

        Thank you,

      • Avatar of dollfacedollface
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          • CFA Level 2
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          Here you go:

          Y = 4500/P + 625 + 87.5[(5821.43-Y)/28.57]

          Y = 4500/P + 625 + 17829.02 – 3.06Y

          4.06Y = 4500/P + 18454.02

          Y = 1108.4/P + 4545.3

          I know it’s not exactly the answer you provided but given rounding error it’s close enough.

          flies away

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