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An economy is described by the following equations: C= 1000 +0.6(Y-T) consumption function IP= 1000 planned investment G=500 government spending NX = 100 net exports

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An economy is described by the following equations: C= 1000 +0.6(Y-T) consumption function IP= 1000 planned investment G=500 government spending NX = 100 net exports T = 1000 taxes What is the short-run equilibrium level of output if the potential output Y* = 5000

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