a) What are the 4 components of GDP (5 Points)

Assume

the economy is described by the following equations:

Y =Y =F(K,L)=1,200

Y=C+I+G

C =125+0.75(Y -T)

I =I(r)=200-10r

G = G = 150

b)

Given the above equations, solve for the value of savings (S). Hint: Savings

equals investment