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Use the information below for a four-sector economy, and answer the following questions: C = 400 + 0.7 Y where: Y = National Income/Y =
Use the information below for a four-sector economy, and answer the following questions: C = 400 + 0.7 Y where: Y = National Income/Y = Real GDP I = 400 C = Consumption G = 400 I = Investment X = 100 X = Exports M = Imports M = 150 + 0.2 Y Yf = Full Employmenthotential GDP Yf = 2,050 Ill Be sure to include the negative sign if it is needed You may round your answers to 2 decimal digits Part1:WhatistheAEfunction:AE= Number + Number Y Part 2: What is the value of Equilibrium GDP (Ye) ? Number Part 3: What is the size of the output Gap (Be sure to include your negative sign if it is needed) ? Number
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