The equilibrium level if autonomous expenditures are $2,000 and the mpe is 0. 5 is $4000.
From the information given, the autonomous expenditures are $2,000 and the mpe is 0. 5.
Here, the equilibrium level will be:
= 2000/(1 - 0.5)
= 2000/0.5
= 4000
In conclusion, the correct option is $4000.
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