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Consider an economy in which the consumption function takes the following simple algebraic form I and in which investment is always $900 and net exports are always

Consider an economy in which the consumption function takes the following simple algebraic form: C = 300 + 0.75DI and in which investment (I) is always $900 and net exports are always -$100. Government purchases are fixed at $1,300 and taxes are fixed at $1,200. Find the equilibrium level of GDP, and then compare your answer to Table and Figure. 

Apr 09 2020 View more View Less

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