Answer:
C = 100+ 0.90Y
I = 400
At equilibrium, Y = C + I
Y = 100 + 0.90Y + 400
0.10Y = 500
Y = $5000
Thus the equilibrium level of outputthe equilibrium level of output is $5000
If the consumption function is C = 100+ 0.90 Y and planned investment spending is 400,...
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