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    The change in equilibrium output

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    1- You are given the following information on the macroeconomy:

    Consumption: 200 + 0.75 Y

    Investment: 100 + 0.10 Y

    Government Spending: 500

    Exports 100

    Imports 50 + 0.25 Y

    Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million.

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    https://brainmass.com/economics/general-equilibrium/change-equilibrium-output-256500

    Solution Preview

    The equation for GDP is

    Y = C + I + G + X - M

    Given
    Consumption: 200 + 0.75 Y
    Investment: 100 + 0.10 Y
    Government Spending: 500
    Exports 100
    Imports ...

    Solution Summary

    Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million.

    $2.49

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