What is the equilibrium level of aggregate output

Reference no: EM13490598

Plot the consumption function C = 100 + 0.75Y on graph paper.

a. Assuming no government sector, if planned investment spending is 200, what is the equilibrium level of aggregate output? Show this equilibrium level on the graph you have drawn.

b. If businesses become more pessimistic about the profitability of investment and planned

Reference no: EM13490598

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