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Consider a Simple Macro Model with a Constant Price Level

Question 116

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Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 120 + 0.86Y,I = 300,G = 520,T = 0,X = 180,IM = 0.12Y.The vertical intercept of the AE function is


A) 120.0.
B) 420.0.
C) 600.0.
D) 828.8.
E) 1120.0.

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