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Illustrate what will be the effect on equilibrium GDP (Y) if G increases by 50

The following information describes a hypothetical economy (assume all numbers are in billion if necessary)

C = 100 + 0.75 DI

Ig = 850

G =950

Xn = -100

What will be the effect on equilibrium GDP (Y) if G increases by 50?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921276

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