The rate of output and planned expenditures for the economy of Timbuktu are shown in the following table:
Total Output Planned Aggregate Expenditures (Two-Sector Economy)
(Real
5,000 5,250
5,500 5,500
6,000 5,750
6,500 6,000
7,000 6,250
e) What would happen to the equilibrium level of output/income if there will be an autonomous increase in investment of $250 billion?
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