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An Economy Has Full-Employment Output of 5000

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An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by
An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by    = 3000 - 2000r + 0.10Y    = 1000 - 4000r where Y is output and r is the expected real interest rate. (a)Find the real interest rate that clears the goods market.Assume that output equals full-employment output. (b)Calculate the amount of saving,investment,and consumption in equilibrium. (c)If a shock to wealth causes desired consumption to decline by 200 (so that the new equation for desired consumption is   = 2800 - 2000r + 0.10Y),find the equilibrium real interest rate,saving,investment,and consumption. = 3000 - 2000r + 0.10Y
An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by    = 3000 - 2000r + 0.10Y    = 1000 - 4000r where Y is output and r is the expected real interest rate. (a)Find the real interest rate that clears the goods market.Assume that output equals full-employment output. (b)Calculate the amount of saving,investment,and consumption in equilibrium. (c)If a shock to wealth causes desired consumption to decline by 200 (so that the new equation for desired consumption is   = 2800 - 2000r + 0.10Y),find the equilibrium real interest rate,saving,investment,and consumption. = 1000 - 4000r
where Y is output and r is the expected real interest rate.
(a)Find the real interest rate that clears the goods market.Assume that output equals full-employment output.
(b)Calculate the amount of saving,investment,and consumption in equilibrium.
(c)If a shock to wealth causes desired consumption to decline by 200 (so that the new equation for desired consumption is An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by    = 3000 - 2000r + 0.10Y    = 1000 - 4000r where Y is output and r is the expected real interest rate. (a)Find the real interest rate that clears the goods market.Assume that output equals full-employment output. (b)Calculate the amount of saving,investment,and consumption in equilibrium. (c)If a shock to wealth causes desired consumption to decline by 200 (so that the new equation for desired consumption is   = 2800 - 2000r + 0.10Y),find the equilibrium real interest rate,saving,investment,and consumption. = 2800 - 2000r + 0.10Y),find the equilibrium real interest rate,saving,investment,and consumption.


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