(Answered) Consider an economy described by the following set of

Economics

Consider an economy described by the following set of equations:

C = 120 + 0.80DI

I = 320

G = 480

(X - IM) =-80

T = 200 + 0.25Y

Find the equilibrium level of GDP. Next, find the multipliers for government purchases and for fixed taxes. If full employment comes at Y 5 1,800, what are some policies that would move GDP to that level?

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