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Suppose that the economy is characterized by the following behavioral equations: C= 170 + 0.7YD I= 170 G= 150 T= 100
a. What does equilibrium output equal? Y=?
b. What does total demand equal? Z=?
c. Total demand is (greater than/equal to/ less than) production
The entire market is capture by a single firm which can produce at a constant average and marginal cost of AC = MC = 10. The firm faces a market demand curve given by Q = 60 ? P.
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