Suppose the consumption function is given by C = 100 + 0.8Yd, where Yd is disposable income. If government spending is 200 and taxes are 150, what is the equilibrium level of output?
Y = 1000
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Suppose the investment function is given by I = 200 - 10r, where r is the interest rate. If the interest rate is 5%, what is the level of investment?
