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Consider the simple macro model c=200+Yd I=150 G=90 T=0.2Y NX=60-0.2Y a) Calculate the AE equation b) Calculate the equilibrium level of Y, C, NX and
Consider the simple macro model
c=200+Yd
I=150
G=90
T=0.2Y
NX=60-0.2Y
a) Calculate the AE equation
b) Calculate the equilibrium level of Y, C, NX and T
C) What is public savings and private savings at equilibrium Y
D)What is MPC and the Multiplier
E)Calculate the change in Y if government spending rises by 20
f) If Y=1000, calculate the average propensity to save and average propensity to consume
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