Question: The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.45 of national income, the MPC

The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.45 of national income, the MPC out of after-tax income is 0.6, investment is 140, government spending is 130, exports are 127, and imports are 0.2 of after-tax income.

National Income

After-tax income

Consumption

I+G+X

Minus Imports

Aggregate Expenditures

100

104

200

300

400

500

600

What is the equilibrium level of national income for this economy?

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