Question: If the consumption function is C = 100 + 0.75Y D , I = 200, government spending is 200, and net exports are zero, what
If the consumption function is C = 100 + 0.75YD, I = 200, government spending is 200, and net exports are zero, what will be the equilibrium level of output? What happens to aggregate output if government spending rises by 100?
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Equilibrium output of 2000 occurs when Y Y ad ... View full answer
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