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In a closedeconomy, consumers spend $200 regardless of the level ofincome, and the marginal propensity to consume(MPC) is 0.80. Investment is equal to $250. The

In a closedeconomy, consumers spend $200 regardless of the level ofincome, and the marginal propensity to consume(MPC) is 0.80. Investment is equal to $250. The government spends $300 and collects $50 in taxes.

What is the equilibrium level of GDP in this economy?

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