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or the following problem, assume that the MPC,b, takes into account how much consumers spend as...

or the following problem, assume that the MPC,b, takes into account how much consumers spend as total income (Y) in the economy is changes. So we can rewrite our consumption function as C= a +bY Furthermore assume: a= $100 billion b=.9 GDP= $6,000 billion

A)What is total Y in the economy ?

B)What is consumption in the economy

C)What are savings in the economy ?

D) If consumers were the only ones buying goods in the economy, would the economy be at equilibrium ? Why or why not ?

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