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Suppose Autonomous Consumption Is $1 Trillion, Investment Spending Is $1

Question 327

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Suppose autonomous consumption is $1 trillion, investment spending is $1.5 trillion, and the marginal propensity to consume is 0.75. Show the graph for the C + I curve. What is the equilibrium level of real GDP? Explain its meaning.

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In the below figure, the C curve has a v...

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