Consider the following demand components: Consumption described as a following: 120 million USD as an autonomous level of consumption plus 80% of disposable income spends on consumption. I = 50 G=10 T= 25 Assuming goods market equilibrium, show equilibrium level of output in this economy: How much output increase, if G increase from 10 to 20, show your calculations:

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Chapter19: Elasticity
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Consider the following demand components:

Consumption described as a following: 120 million USD as an autonomous level of consumption plus 80% of disposable income spends on consumption.

I = 50

G=10

T= 25

Assuming goods market equilibrium, show equilibrium level of output in this economy:

How much output increase, if G increase from 10 to 20, show your calculations:

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