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Unformatted text preview: In addition to the mode given above, we also know that E = Y in equilibrium. E = C + I + G E = [ 125 + 0.75 (Y T) ] + [ 150 ] + [ 100 ] E = 125 + 0.75 (Y 100) + 150 + 100 E = 375 + 0.75 Y 0.75 (100) E = 300 + 0.75 Y Since E = Y in equilibrium, then Y = 300 + 0.75 Y Y 0.75 Y = 300 0.25 Y = 300 Y = [1 / 0.25] 300 Y = 1200...
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This note was uploaded on 11/17/2009 for the course ECO 121212 taught by Professor Smith during the Spring '09 term at CulverStockton.
 Spring '09
 Smith
 Macroeconomics

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