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