Consider an open economy simple Keynesian model with autonomous investment (I), constant propensity to save (s) out of disposable income, a constant rate of taxation (t) by the government on total income, an exogenous amount of government expenditure (G), an autonomous level of exports (X) and imports determined as a function of income with a constant import intensity (m).
Let I = 4800 G = 6000 X = 1200 s = 0.5 t = 0.4 m = 0.1
In the above model, the equilibrium level of income is :
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