Compute equilibrium level of income-size of multiplier

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Reference no: EM13838038

You are given the following information on the macro economy (in millions dollars):

Consumption: 250 + 0.60Y

Investment: 100 + 0.35Y

Government Spending: 400

Exports: 50

Imports: 50 + 0.20Y

Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for a decrease in autonomous investment by $75 million. Show your work.

Reference no: EM13838038

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