What is the new equilibrium level of real gdp

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Reference no: EM13182663

Use the following equations for exercises 16-18.

C=$100+0.8Y

I=$200

G=$250

X=$100-0.2Y

1. What is the new equilibrium level of real GDP if government spending increases by $150?

2. What is the new equilibrium level of real GDP if government spending and taxes both increase by $150?

Reference no: EM13182663

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