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Consider a mathematical model of the macro economy, called the Expenditure-Output Model. As a reminder, the basic form of such a model is: Y =
Consider a mathematical model of the macro economy, called the Expenditure-Output Model. As a reminder, the basic form of such a model is: Y = C + I + G + NE. Now, let's say we have the following parameters (note: this is a model that takes into account taxes).
a = 100
MPC = 0.8
T = 300
I = 200
G = 300
NE = 140
Calculate Y. Don't just write the final result, show your work!
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