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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?
Identify trends or other patterns in inflation within the Spanish economy over the last five years using quarterly data. You must include data to justify the trends described.
subjective questions on national income determination
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