Consider the following model of the economy:

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Consider the following model of the economy:

C = 50 + 0.60 (Y – T)

I = 380

G = 400

T = 0.20Y

Y = C + I + G

a. What is the value of the MPC in this model?
b. Compute the equilibrium level of income 

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Consider the following model of the economy:
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