An economy is described by

C = 160 + 0.5YD

I = 150

G= 150

T = 100

NX = 0

a) Find equilibrium Y (real GDP).

b) Find disposable income, YD.

c) Find consumption.

Now, let G = 200 (not 150).

d) Find the new value of Y.

e) Find the new value of YD.

f) Compute private saving, public saving, and national saving

g) Does national saving = I in this case? Show why or why not.