If the consumption function is C = 100 + 0.75Y D , I = 200, government spending

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If the consumption function is C = 100 + 0.75Y_D, I = 200, government spending is 200, and net exports are zero, what will be the equilibrium level of output? What happens to aggregate output if government spending rises by 100?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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Question Posted: Nov 09, 2018 12:35 PM

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If the consumption function is C = 100 + 0.75Y D , I = 200, government spending

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Equilibrium output of 2000 occurs when Y Y ad ...View the full answer

The Economics of Money Banking and Financial Markets

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