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2. The following equations refer to the goods market of an economy in billions of euros: c = 480 + 0.5YD I=110 T=70 G=250 a.

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2. The following equations refer to the goods market of an economy in billions of euros: c = 480 + 0.5YD I=110 T=70 G=250 a. Solve for the goods market equilibrium. b. Find equilibrium disposable income (YD). c. Find equilibrium consumption (C). 3. Refer to the economy in Problem 2. a. Calculate the private savings, public savings, and investment spending. b. Calculate the multiplier and explain how it affects equilib- rium output. c. Suppose that the government decides to increase its spend- ing from 2 50 billion to 3 00 billion. Find the equilibrium output, consumption, and disposable income. Why would the government decide to expand scal spending

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