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In an economy with no government and no foreign sectors, autonomous consumer spending is $250 billion, plannedinvestment spending is $350 billion, and the marginal propensity to consume is 2/3.a. plot the aggregate consumption function and planned aggregate spending. b. what is unplanned inventory investment when real gdp equals $600 billion? c. what is y*, income–expenditure equilibrium gdp? d. what is the value of the multiplier? e. if planned investment spending rises to $450 billion, what will be the new y*?
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In an economy with no government and no foreign sectors, autonomous consumer spending is $250 billio...
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