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If, consumption, C = 150 + .8Y, investment, I = $35, Govt. expenditures, G = $40, exports, X = $15, and imports, M = $10
a. What is the level of aggregate expenditures if income level were $1,000?
b. What is the level of aggregate expenditures if income level were $1,200?
c. Solve for the equilibrium level of income (output). (Hint: Set up the equation as Y = C + I + G + X - M, and then solve for Y)
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