Find out the equilibrium level of income, Macroeconomics

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Suppose you have the following information about a closed economy:

C = 50 + 0.80 (Y-T)

I = 200

G = 100

a) Find out the equilibrium level of income.

b) Suppose G increases to 125 what is the new equilibrium level of income?

c) What level of G is needed to achieve a target income of 200?

 


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