What is the level of income in the country of examland?, Ask an Expert

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You've just been appointed economic adviser to Examland. The mpe is .6; autonomous investment is $1,000; autonomous government spending is $8,000; autonomous consumption is $10,000; and autonomous net exports are $1,000.

a. What is the level of income in the country of Examland? describe how you obtain your answer.

b. Autonomous net exports increase by $2,000. What will happen to income? describe why.

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