the last 3 parts e, f, and g Please see below the spending information pertaining to the participants of a hypotheticaleconomy.C = $10+ 0.8YI = $20G = $30X-M = $10(a) State the name of the economic agent/participant that each equation above wouldapply to.(b) State the assumptions underlying the equations for C and I. Why do we make theseassumptions?(c) Draw a graph to illustrate the desired aggregate expenditures of an economy whoseparticipants have the spending plans provided above.(d) Calculate the value of equilibrium output.(e) How much are consumers saving at equilibrium and how much non-consumerspending is being injected?(f) Assuming that the full-employment level of output is $300, what kind of gap existsand how large is it? Identify the gap on the graph.(g) What type of policy would you recommend to the policymakers to achieve full-employment level of output? Why? What could be some of the concerns associatedwith your policy proposal?

Aggregate demand in an economy is the sum of private consumption expenditure (C), private investment…

(e) How much are consumers saving at equilibrium and how much non-consumer spending is being injected? (f) Assuming that the full-employment level of output is $300, what kind of gap exists and how large is it? Identify the gap on the graph. (g) What type of policy would you recommend to the policymakers to achieve full- employment level of output? Why? What could be some of the concerns associated with your policy proposal?

(e) How much are consumers saving at equilibrium and how much non-consumer spending is being injected? (f) Assuming that the full-employment level of output is $300, what kind of gap exists and how large is it? Identify the gap on the graph. (g) What type of policy would you recommend to the policymakers to achieve full- employment level of output? Why? What could be some of the concerns associated with your policy proposal?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 7SQP

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