If the consumption function is C = 100 + 0.8Y and planned investment spending is 200, what
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If the consumption function is C = 100 + 0.8Y and planned investment spending is 200, what is the equilibrium level of output? If planned investment falls by 100, how much does the equilibrium level of output fall?
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To find the equilibrium level of output we need to set the total planned expenditure Aggregate Deman...View the full answer
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