Help as soon as possible An economy has full-employment output of 1000. Desired consumption and desiredinvestment are given byCrd=200+ 0.8(Y – T) – 500r-Id=200 - 500rGovernment purchases are 196, and taxes areT = 20+ 0.25Y7.b. With your answer in 7.a, find the desired saving.

Full employment output (Y)=1000Desired consumption expenditure is given by Desired investment:…

An economy has full-employment output of 1000. Desired consumption and desired investment are given by Cd 200+ 0.8(Y-T) - 500r = Id = 200 - 500r Government purchases are 196, and taxes are T= 20+ 0.25Y 7.b. With your answer in 7.a, find the desired saving.

An economy has full-employment output of 1000. Desired consumption and desired investment are given by Cd 200+ 0.8(Y-T) - 500r = Id = 200 - 500r Government purchases are 196, and taxes are T= 20+ 0.25Y 7.b. With your answer in 7.a, find the desired saving.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 3.7P

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Help as soon as possible

An economy has full-employment output of 1000. Desired consumption and desired
investment are given by
Crd
=
200+ 0.8(Y – T) – 500r
-
Id
=
200 - 500r
Government purchases are 196, and taxes are
T = 20+ 0.25Y
7.b. With your answer in 7.a, find the desired saving.

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