Question: Aggregate Demand I Work It Out Question 1 In the Keynesian cross model, assume that the consumption function is given by C = $90 +

Aggregate Demand I Work It Out Question 1 In the Keynesian cross model, assume that the consumption function is given by C = $90 + 0.7(Y T) Planned investment is $150; government purchases and taxes are both $200. c. If government purchases increase to $215, what is the new equilibrium income? What is the multiplier for government purchases

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