An economy has full-employment output of 9000, and government purchases are 2000. Desired consumption and desired investment are as follows: Real Interest Rate (%) Desired Consumption Desired Investment 2 6100 1300 3 6000 1200 4 5900 1100 5 5800 6 5700 1000 900 If the goods market is in equilibrium, what are the values of the real interest rate, desired national saving, and desired investment? r = %. (Enter your answer as a whole number.) =pl = ps (Enter your answer as a whole number.) Repeat the above for the case in which government purchases fall to 1800. Assume that the amount people desire to consume at each real interest rate is unchanged. r=%. (Enter your answer as a whole number.) sd = d = (Enter your answer as a whole number.)
An economy has full-employment output of 9000, and government purchases are 2000. Desired consumption and desired investment are as follows: Real Interest Rate (%) Desired Consumption Desired Investment 2 6100 1300 3 6000 1200 4 5900 1100 5 5800 6 5700 1000 900 If the goods market is in equilibrium, what are the values of the real interest rate, desired national saving, and desired investment? r = %. (Enter your answer as a whole number.) =pl = ps (Enter your answer as a whole number.) Repeat the above for the case in which government purchases fall to 1800. Assume that the amount people desire to consume at each real interest rate is unchanged. r=%. (Enter your answer as a whole number.) sd = d = (Enter your answer as a whole number.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![An economy has full-employment output of 9000, and government purchases are 2000. Desired consumption and
desired investment are as follows:
Real Interest
Rate (%)
Desired
Consumption
Desired
Investment
2
6100
1300
3
6000
1200
4
5900
1100
5
5800
6
5700
1000
900
If the goods market is in equilibrium, what are the values of the real interest rate, desired national saving, and
desired investment?
r = %. (Enter your answer as a whole number.)
=pl = ps
(Enter your answer as a whole number.)
Repeat the above for the case in which government purchases fall to 1800. Assume that the amount people desire to
consume at each real interest rate is unchanged.
r=%. (Enter your answer as a whole number.)
sd = d =
(Enter your answer as a whole number.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95e0a9aa-4669-4863-8cd3-9749182f4e8b%2F84af4688-ea50-4329-a0ba-cc787a013393%2Fvdtmczg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An economy has full-employment output of 9000, and government purchases are 2000. Desired consumption and
desired investment are as follows:
Real Interest
Rate (%)
Desired
Consumption
Desired
Investment
2
6100
1300
3
6000
1200
4
5900
1100
5
5800
6
5700
1000
900
If the goods market is in equilibrium, what are the values of the real interest rate, desired national saving, and
desired investment?
r = %. (Enter your answer as a whole number.)
=pl = ps
(Enter your answer as a whole number.)
Repeat the above for the case in which government purchases fall to 1800. Assume that the amount people desire to
consume at each real interest rate is unchanged.
r=%. (Enter your answer as a whole number.)
sd = d =
(Enter your answer as a whole number.)
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