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February 19th, 2023

Consider the following information for an economy (Note: No G or T):C = 150 + 0.75Y + 0.02W,I = 400, X = 150, IM = 0.03Ywhere wealth, W = 800.Calculate the equilibrium national income for this economy. Calculate the multiplier for the economy. (3)Suppose there is an economic growth in U.S., which results in an increase in exports to 400. How much does equilibrium national…

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