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Suppose that the level of Government expenditure increases to G = 200. What is the equilibrium value of aggregate income, Y ? (Note: you will
Suppose that the level of Government expenditure increases to G = 200. What is the equilibrium value of aggregate income, Y ? (Note: you will no longer get a round number for Y .)
C(Yd) = 58 + 0.6 Yd
I(r) = 52 ? 0.2 r
G = 180
t = 0.4 (represents 40%)
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