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Economics

An economy has the following consumption function: C=200+0.8DI
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are$100. Investment is $600. Find equilibrium GDP. What is the multiplier for this economy? If G rises by $100, what happens to Y? What happens to Y if both G and T rise by $100 at the same time?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9441052

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