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Output in a Private-Closed Economy Consumption Determination WR2C-A+C-Y where A can be regarded as autonomous consumption and c Y as the income-related consumption. Note that 1>C>0. This 2 indicates that when income increases. the s consumption will- also increase, but with y p less amount( see figure presented in class)sOutput in a Private-Closed Economy • Consumption Determination: C = A + c·Y where A can be regarded as autonomous consumption and c·Y as the income-related consumption. Note that 1 > c > 0. This indicates that when income increases, the consumption will also increase, but with less amount (see figure presented in class)
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