Using the Keynesian Cross, If Autonomous Consumption Is $200, Government

question 57

Multiple Choice

Using the Keynesian cross, if autonomous consumption is $200, government spending and taxes are $300, investment is $100, net exports is $100, and the marginal propensity to consume is 0.5, find equilibrium output.

• A) $600
• B) $750
• C) $1,400
• D) none of the above

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