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Find the relation of planned aggregate expenditure

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Reference no: EM132813396

In a certain economy, the components of planned spending are given by = 700 + 0.1( - ) - 400 = 300 - 400

= 200

= 50

= 0

= ¯ = 100

Find the relation of planned aggregate expenditure ( ) to the real interest rate, , and output, , in the economy. Find exogenous expenditure and induced expenditure?

Reference no: EM132813396

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