Question: The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.3 of national income, the MPC
The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.3 of national income, the MPC out of after-tax income is 0.8, investment is 41, government spending is 50, exports are 35, and imports are 0.2 of after-tax income. What is the equilibrium level of national income for the economy?
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