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31-01-2024
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Assume: C = 40 + 0.8(Y - T) G = 10 I = 20 T = 0, where T are taxes. Now further assume, EX = 5 + 4EP /P IM = 10 + 0.1 (Y - T) - 3EP /P E = 3 P = 1.5 P = 2
What is Y at equilibrium in an open economy?

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