Based on the below information, help Renwick economy find the equilibrium level of output.
Aggregate Demand
YAD = C + I + G YAS = A Kα L1-α YR =0.5YAD+ 0.5YAS
C = 600 + βYD A = (1 + g) Ao
YD = YR + TR - tYR K = 35
TR = 55 L = 80
G = 120 g = 6%
I = 50 Ao = 150
t = 0.15 α = 0.65
Where C is private consumption, YD is disposable income; TR, G and I are transfer payments, government spending and total investment, respectively. A in the index of technology and K and L are capital and labour inputs. A0 is the initial levels of A and L, both assumed to be 150, while g is the growth rates. The MPC is 0.60.
a.) Find aggregate demand equation
b.)Fine aggregate supply equation
c.)Equate both aggregate demand and supply to find output
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