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Assume the following model of the closed economy of Wakanda. Y = Output/GDP Y = C + I + G Y = F(K, L) =

Assume the following model of the closed economy of Wakanda.

Y = Output/GDP

Y = C + I + G

Y = F(K, L) = 20K0.3L0.7 and K = 4 and L = 20.

C = 50 + 0.75(Y - T)

Y - T = Disposable income

T = 80 I = 100 - 20r

r = real interest rate

G = 85

Calculate the following;

a) Y = ?

b) Disposable income c) C = ?

d) public saving

e) national saving

f) r = ?

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