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extendedexample.pdf

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Department
Economics
Course
ECO202Y1
Professor
Gustavo Indart
Semester
Summer

Description
Extended Example Suppose we have the following desired expenditure funcons for the economyC1009YdTA02Y I25 G17 X24 M01Y iCalculate the AE schedule iiCalculate the equilibrium level of Naonal IncomeiiiGraph the AE schedule Clearly label the axes the equilibrium level of naonal income and any intercept ivAll else equal suppose Government spending increases to 265 Use the mulplier to calculate the new equilibrium level of naonal income
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