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Because you are using the opamp as a dc amplifier the output contains the input offset voltage (multiplied by 100) that is contained in the opamp macro model.
By recalculating you get an input offset of 29 mV/100=0.029 mV=29 µV - a quite normal value.
So, I get an offset of 0.7188V. So I guess there's nothing wrong with the circuit once I put an AC source. I have one more question. What indicates the offset value in datasheet ? Is the picture showing the the voltage offset value. If so why is it that the offset I am getting in simulation is not within 1mv - 2.2mv as mentioned. I am getting 0.71mv.
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it is a bipolar input opamp, you put a large feedback resistor will introduce a large dc offset
No you don't. Firstly, any OP offset voltage specification is input not output related. Secondly, the expectable output voltage is about 2.8 V, as mister_rf explained, so the input referred offset is clearly below 1 mV.So, I get an offset of 0.7188V.
LM6142 bias current is specified with 250 nA typically. So the 10k feedback network impedance will in fact add 2.5 mV input offset. Not a huge value, but it matters.