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1. Suppose autonomous spending equals $950 and MPC = 0.5 What will be the equilibrium level of real GDP? -- 2. The Smith family 's

1. Suppose autonomous spending equals $950 and MPC = 0.5

What will be the equilibrium level of real GDP?

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2. The Smith family 's annual disposable income is $100,000. This family saves 45 cents out of every dollar of disposable income, and it spends $35,000 even if it has zero disposable income. How much is the Smith family's consumption spending at its current level of disposable income?

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