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Macroeconomics Final - Part 2 of 4!
SAMPLE
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15. Deriving the Aggregate Expenditures Model / AE Model: Algebraic Approach / Problem 5
Problem 5

If the consumption function is C = 200 + 0.8Y and the other components of aggregate expenditure are I = 150, G = 100, and NX = 50, what is the equilibrium level of GDP?