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It sounds to me ilke the idle cut-off solenoid is either not hooked up, hooked up incorrectly, or malfunctioning.
The solenoid is the cylindrical thing sticking out of the left side, near the bottom of the carb. The wire from this should go to the + terminal on the coil. When the key is on, power to this terminal of the coil opens the valve to the idle circuit. When the key is off, the valve shuts to avoid run-on.
To test the solenoid, remove the wire with the key on (engine off) and listen or feel for it to "click". If the wire is routed correctly and there's no click, then the solenoid is bad.
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