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To analyze a three-sector economy, we consider households, firms, and the government as the main sectors. The primary objective is to determine national income, aggregate expenditure, and equilibrium output using the given data. In a three-sector economy, the total national income (Y) is the sum of consumption (C), investment (I), and government expenditure (G). The fundamental equilibrium condition is that aggregate demand equals national income, expressed as Y = C + I + G. Consumption (C) depends on the disposable income (Yd), which ___ _________ ________ ___ _______ ____ ___.
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