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In a closed economy consumers spend 100 regardless of the

In a closed economy, consumers spend $100 regardless of the level of income, the marginal propensity to consume is .8. Investment is equal to $200. The government spends $500 dollars and collects $150 dollars in taxes. What is the equilibrium level of GDP in this economy?

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Solution Preview :

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Macroeconomics: In a closed economy consumers spend 100 regardless of the

Reference No:- TGS0664506

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Macroeconomics: In a closed economy consumers spend 100 regardless of the

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