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Assume you have the following information about the UK economy: Investment is exogenous and currently at 367 billions (I = 367) The marginal propensity to
Assume you have the following information about the UK economy: Investment is exogenous and currently at 367 billions (I = 367) The marginal propensity to consume is 0.9 ` (a = 0.9) Given the national income model: E = Y Y = C I C = aY Where: Y: National income E: Aggregate expenditure C: Consumption I: Investment What is the equilibrium level of national income (Y)
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
