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  3. income or output y consumption expenditure c investment expenditure i...

Question: income or output y consumption expenditure c investment expenditure i...

Question details

Income

Or

Output

Y

Consumption

Expenditure

        C

Investment

Expenditure

      I

Government

Expenditure

         G

Net export

Expenditure

       NX

$4,000

3,925

100

100

25

4,100

4,000

100

100

25

4,200

4,075

100

100

25

4,300

4,150

100

100

25

4,400

4,225

100

100

25

4,500

4,300

100

100

25

4,600

4,375

100

100

25

4,700

4,450

100

100

25

4,800

4,525

100

100

25

4,900

4,600

100

100

25

5,000

4,675

100

100

25

3. Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 9.8%, and the MPC is 0.90.

Show it with help of a graph taking AE on the vertical axis and income on the horizontal axis.

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