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1.In an economy with no government and no foreign sector GDP is $8,000, autonomous consumption is $600, planned investment spending is $400 and marginal propensity
1.In an economy with no government and no foreign sector GDP is $8,000, autonomous consumption is $600, planned investment spending is $400 and marginal propensity to consume is 0.8. Income-expenditure equilibrium is achieved when GDP is:
a)$8,000
b)$5,000
c)$3,500
d) $4,000
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