' 2. In modern time, scal policy has become an effective instrument which allows governments to influence many macroeconomic variables. For example, policy-makers could adjust aggregate economic activities by changing the levels of taxation (revenue) and spending (expenditure). Use a closed economy (no international trade) as the model, nish the following questions. (1) The table following shows you sdme macroeconomic indicators of the US in 2019. ' National accounts of the United States in 2019 $21.4 trillion $3.4 trillion meme 70%(or0n At aggregate level,'demand for fictional income (Y) of a closed economyican be modeled as, Y = C(Y - T) + I + G. Here total consumption (C) is a function of MPG and disposable income as C = WC*(Y T). Based on the information above, how much is total investment (I) of the United States in 2019. What is percentage (5%) of investment of GDP in 2019? Note: In a closed economy, we do not consider international trade or net export (MY). (2) In 2020, to counter the economic fallout of the COWD~19 pandemic, the US govermnent took several economic stimulus measures. For example, the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed in March 2020. After economic stimulus packages, total federal spending spiked to $6.6 trillion in 2020. 2019 ' 2020 Federal S - endin_ $4.4 trillion $6.6 trillion % oftheus GDP 331.3% How real interest rate (r) is determined in a closed economy? How the increase of federal spending would affect total national savings (S), real interest rate, and investment? Based on _ _ information given, use a proper supply-demand diagram to depict the change of real interest rate of the US in 2020. Note: Here we still assume we are in a close' economy