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Suppose you have the following data for an imaginary economy: C = $1300+ 0.75Yd T=$800+0.2Y 1 = $800 G=$1800 EX-IM = $0 Solve for the
Suppose you have the following data for an imaginary economy: C = $1300+ 0.75Yd T=$800+0.2Y 1 = $800 G=$1800 EX-IM = $0 Solve for the demand function in terms of Y. For your answer, just put the intercept term for the demand function (don't forget the dollar sign, i.e. $2000) Solve for the demand function in terms of Y. For your answer, just put the intercept term for the demand function (don't forget the dollar sign, i.e. $2000) What is the slope of the demand function? Round three decimal places What is the equilibrium output? (Don't forget to add the dollar sign, example, $2000) What is the government spending multiplier? Make sure to round three decimal places What is the lump-sum tax multiplier? Make sure to round three decimal places A/
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