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An economy is described by the following equations: C = 1,600 + 0.9 (Y T) Ip = 800 G = 1,600 NX = 200 T

An economy is described by the following equations: C = 1,600 + 0.9 (Y T) Ip = 800 G = 1,600 NX = 200 T = 1,600 Y* = 9,250 The multiplier for this economy is 10. Find the effect on short-run equilibrium output of: a. An increase in government purchases by 50 from 1,600 to 1,650

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