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For this hypothetical economy the current equilibrium level of output/income is £100 billion made up of Consumption £80 billion, savings £5 billion, taxation £5 billion and imports £10 billion. If the government decides to increase its expenditure by £10 billion what will be the new equlibrium level of output/income.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M962280

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