Assume that the economy can be modeled as follows: AE = C + I + G C = 300 + .6Yd I = 400 G = 100 T = 200 1) Solve for equilibrium income (Y*).  2) Graph the economy. (Upload the graph in the next question.) 3) What is the level of consumption in equilibrium?

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Q: 1. Use the following lon from a fictional economy: Consumption, C = 250 + 0.8 Yd Investment, I = 200…

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