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9. Suppose that the consumption function is give by C(Y) = 480 + .40(Y - T'), Planned investment is 160, government spending is 20, and

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9. Suppose that the consumption function is give by C(Y) = 480 + .40(Y - T'), Planned investment is 160, government spending is 20, and government taxes are also 20. (a) Solve for the equilibrium level of income, and sketch the Keynesian cross. 10 points. (b) Suppose that the government would like to change GDP. What change in government taxes is needed to increase GDP by 150? 5 points

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