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1. Write down the consumption function given the above information.
2. Determine the level of consumer spending and the level of savings, if the national income is $4500. Please remember to show your work.
3. What is the level of consumer spending that the firms are expecting, if the national income is $4500. Please show your work. Hint: Y= C+Ii
4. Is the economy in equilibrium? Why or why not?
5. Solve for the equilibrium level of national income, using the formula Y= C+I.
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