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I. You are given the following information about a hypothetical economy C 800+ 0.75Y 1 500 G- 900 Where C- Consumption 1 Investment G Government spending () Compute the equilibrium level of national output and consumption. (ii) What is the size of government expenditure multiplier (ii) Interpret the government expenditure multiplier in 1 (b) (ii) above (3mks) (3mk) (3mks)

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