Assume That GDP (Y) Is 5,000

question 28

Essay

Assume that GDP (Y) is 5,000. Consumption (C) is given by the equation C = 1,200 + 0.3(Y - T) - 50r, where r is the real interest rate, in percent. Investment (I) is given by the equation I = 1,500 - 50r. Taxes (T) are 1,000, and government spending (G) is 1,500.
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a.What are the equilibrium values of C, I, and r?
b.What are the values of private saving, public saving, and national saving?
c.Now assume there is a technological innovation that makes business want to invest more. It raises the investment equation to I = 2,000 - 50r. What are the new equilibrium values of C, I, and r?
d.What are the new values of private saving, public saving, and national saving?​

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Societies Progress

The development and evolution of social, economic, and cultural practices within societies, often aimed at improvement or advancement.

Gender

Gender refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men, women, and non-binary individuals.

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Societies Progress

The concept or measurement of improvement and development within societal structures, often based on factors like technological advancement, social equality, and economic growth.