1.) Consider a relatively well-developed liberal-democracy, with a closed-economy; described by the following equations in the shortrun:

The Goods-and Services Market:

-Aggregate Consumption Spending: C (Yd) = 150 + .75Yd

-Planned Investment Spending: I(r) = 100 - 20r

-Annual Federal Income Tax Revenue: T = 200

--Government Spending: G = 350

-*Equilibrium in the Goods-and-Services Market:

Y = C(Y-T) + I(r) + G

The Money Market:

Money demand: (