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Now suppose investment spending rises to 200, will equilibrium GDP increase? Derive the answer both numerically and graphically. 2. From the following data, construct an

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Now suppose investment spending rises to 200, will equilibrium GDP increase? Derive the answer both numerically and graphically. 2. From the following data, construct an expenditure schedule on a piece of graph paper. Then use the income-expenditure (45-degree line) diagram to determine the equilibrium level of GDP. Compare your answer with your answer to the previous question. Income Consumption Investment Government Net Exports Purchases 3,600 3,280 180 120 3,700 3,340 210 120 3,800 3,400 240 120 3,900 3,460 270 120 4,000 3,520 300 120

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