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In the Keynesian AE model, if the autonomous components of consumption, investment, government spending, and net export spending total $200 billion, and the spending multiplier
In the Keynesian AE model, if the autonomous components of consumption, investment, government spending, and net export spending total $200 billion, and the spending multiplier is 5 What is the equilibrium output level?
Select one:
a.
$500 billion
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b.
$800 billion
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c.
$1500 billion
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d.
$1000 billion
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e.
None of the above
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