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Assume an economy is represented by the following: c= 200 + 0.85Yd, T=1800, G=2000, I=200, actual output=3000, a)what is the level of planned expenditure at
Assume an economy is represented by the following:
c= 200 + 0.85Yd,
T=1800,
G=2000,
I=200,
actual output=3000,
a)what is the level of planned expenditure at this level of output
b)level of unplanned changes in inventories
c) calculate the equilibrium level of output
d) base on analysis in part C, calculateconsumption and saving that occur when economy is at equilibrium
d) now suppose G decrease by 200 and T decrease by 150. What is the new equilibrium level of income
e) determine if the economy is operating with deficit or surplus
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