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Behavioral Economic Equation Assignment | Homework For You

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December 5th, 2019

. Suppose that the economy is characterized by the following behavioral equations: C = 160 + 0.6YD, I = 150, G = 150, T = 100.•

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Homework For You

a. Solve for equilibrium output. Compute total demand. Is it equal to production? Explain.•

b. Assume that G is now equal to 110. Solve for equilibrium output. Compute total demand. Is it equal to production? Explain.•

c. Assume that G is equal to 110, so the output is given by your answer to (b). Compute private plus public saving. Is the sum of private and public saving equal to investment? Explain. Get Economics homework help today

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