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KonstantinChe [14]
3 years ago
9

If the consumption function is C​ = 100​ + 0.75Y and planned investment spending is 500​, what will be the equilibrium level of​

output? Ye​ = ​$ nothing. ​(Enter your response as an​ integer.)
Business
1 answer:
snow_lady [41]3 years ago
7 0

Answer:

The equilibrium level of​ output will be Y=2200

Explanation:

Comnsider the following formulas to solve the exercise.

1. Using the Expenditure approach to GDP,

Y=C+I+G

Y=200 + 0.75(Y-200)+200+300

Y=700+0.75Y-150

0.25Y=550

The equilibrium level of​ output will be Y=2200

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Answer:

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