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Build SD model to analyze the following Keynesian model: Consumption function...

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Build SD model to

analyze the following Keynesian model:

Consumption function

:  C(t) = 200 + 0.8Y(t)

Planned

expenditures   :  E(t) = C(t) + I + G

Investment                  

:   I = 150

Government

spending  :  G = 250

Income short-run

adjustment             

: ΔY(t+1) = 0.5 (E(t) – Y(t))

Establish the equilibrium level of income Y.

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