Consider the following demand components: Consumption described as a following: 100 million USD as an autonomous level of consumption plus 95% of disposable income spends on consumption. I = 30 G=15 T= 20 (a)Assuming goods market equilibrium, show equilibrium level of output in this economy. (b)How much output increase, if G increase from 15 to 20, show your calculations.
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Consider the following
Consumption described as a following: 100 million USD as an autonomous level of consumption plus 95% of disposable income spends on consumption.
I = 30
G=15
T= 20
(a)Assuming goods
(b)How much output increase, if G increase from 15 to 20, show your calculations.
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