Consider the following long-run model: Real GDP (Y) = 2,000; Consumption (C) = 300 + 0.6...

Consider the following long-run model: Real GDP (Y) = 2,000; Consumption (C) = 300 + 0.6 (Y-T); Investment (I) = 500 -30r where r is the real interest rate; Taxes (T) = 450; Government spending (G) = 400. i. Compute consumption, private savings, public savings, national savings, investment and the real interest rate.

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Rahul Sunny answered 2 years ago

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