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The Following Information Is for a Private Closed Economy,where Ig

question 32

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The following information is for a private closed economy,where Ig is gross investment,S is saving,and Y is gross domestic product (GDP) .
Ig = 80
S = -80 + .4Y
-Refer to the above information.The equilibrium GDP will be:


Definitions:

Tax Rate

The proportion of their earnings or profits that entities or individuals are required to pay to the government in the form of taxes.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Inventory

The inventory of products and materials maintained by a business for selling or manufacturing purposes.

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