Analyzing change in government expenditure

Reference no: EM1373937

Describe the likely effects on Savings [Gross Private Domestic] Investment, Long Term Real Interest Rates, The Capital Stock, Natural RGDP and Natural Per Capita RGDP of a reduce in Government Investment Spending (with no change in tax rates). Describe this in about two pages double spaced, and include information in terms of I = S prime + (T-G) + (IM-X)
Also demonstrate this shift on an equilibrium type graph where the R 0, R 1, and R 2 are on the Y axis and I0, I1,I2 and S0, S1, S2 are on X axis.

Reference no: EM1373937

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