Equilibrium output equals

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Assume that the marginal propensity to consume is 0.90 and autonomous consumption expenditures equal $100 billion. Further, assume that planned investment spending is $300 billion and government spending, taxes, and net exports are zero.

Equilibrium output equals ____________

If autonomous consumption expenditures drop by $50 billion to $50 billion, equilibrium output equals _________

Reference no: EM131097279

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