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Use the Following Situation to Answer the Question : Situation

Question 35

Multiple Choice

Use the following Situation to answer the question : situation 20-1
Assume a closed economy with no government. Suppose that autonomous consumption equals $400, planned investment equals $500, and the mpc equals 0.9.
-Using the information in Situation 20-1,the equilibrium level of aggregate output is


A) $900.
B) $8,000.
C) $9,000.
D) $10,000.

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