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An economy is described by the following equations: C = 10 + 0.7(Y-T) I p = 80 G = 104 NX = 15 T =

An economy is described by the following equations:

C = 10 + 0.7(Y-T)

Ip = 80

G = 104

NX = 15

T = 170

Y* = 600

  1. Find a numerical equation linking planned aggregate expenditure to output.
  2. Find autonomous expenditure and induced expenditure in this economy.
  3. Find the value of a short-run equilibrium output and construct a Keynesian-cross diagram.

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