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1. a) Given the variables below fill out the cells in table 1. Include the formulas where required. Variables Autonomous Consumption (c) = 50 Desired

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1. a) Given the variables below fill out the cells in table 1. Include the formulas where required. Variables Autonomous Consumption (c) = 50 Desired Investment (1) = 150 Desired Government Purchases (G) = 175 Desired Exports (X) = 125 Marginal Propensity to Consume (MPC) = 0.8 Marginal Propensity to Import (m) = 0.3 Tax rate (t) = 0.2 Table 1 Actual Desired Desired National Autonomous Desired Desired Government Desired Desired Aggregate Income (Y) Consumption Consumption Investment Purchases Exports Imports Expenditure Formula => 0 150 + 300 450 600 750 900 1050 + K y b) Given the information above, calculate the equilibrium level of Desired Aggregate Expenditures / National Income. Show your work. c) Describe where the equilibrium would appear on Figure 1 below

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