Assuming no government sector if planned investment, Macroeconomics

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Assuming no government sector if planned investment

Plot the consumption function C = 100 + 0.75Y on graph paper.

a. Assuming no government sector, if planned investment spending is 200, what is the equilibrium level of aggregate output? Show this equilibrium level on the graph you have drawn.

b. If businesses become more pessimistic about the profitability of investment and planned

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Macroeconomics: Assuming no government sector if planned investment

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Macroeconomics: Assuming no government sector if planned investment

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