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Suppose an economy is characterized by the following equations: C= 520 + 0.6 Yd Yd = Y - T I = 500 G = 500 T = 400
a. Is this economy closed or open? Explain
b. Determine the following: 1) The equilibrium level of GDP(Y)
2) The total disposable income(Yd) of the household
3) Total consumption expenditure
4) Private savings of household, government savings and the national savings of the economy
5) Is the private savings the same as aggregate investment? Explain
Find out statistics on the web from 2004 to present on following indicators of the macroeconomic conditions of the U.S. economy.
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