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What is the new equilibrium level of gdp

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Reference no: EM132550285

Consider an economy in which C = 1000 + 0.5YD, I = 200, T= 300, and (X-M) = 0.

- Calculate the equilibrium, savings level of GDP (equation for leakages), spending multiplier and tax multiplier.

- How will equilibrium GDP change if G increases by 100, and what is the new equilibrium level of GDP?

Reference no: EM132550285

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