Assume the following information for an economy:     Natural level of output = $190b     Autonomous consumption = 50     Total investment = 16     Government expenditure = 19     Autonomous taxation = 20     Marginal propensity to consume = 0.6 Based on this information answer the following questions: d)  Assume the government increased spending by $5b. Calculate what the new equilibrium level of output will be.

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Chapter1: Making Economics Decisions
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Assume the following information for an economy:

    Natural level of output = $190b

    Autonomous consumption = 50

    Total investment = 16

    Government expenditure = 19

    Autonomous taxation = 20

    Marginal propensity to consume = 0.6

Based on this information answer the following questions:

d)  Assume the government increased spending by $5b. Calculate what the new equilibrium level of output will be. 

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