Assume the following parameters for a closed economy:

C = 150 + .8(YD) I= 500 G =500T = 450 Full-employment Y = 4000

A. Calculate equilibrium income.

B. In the space below, graph the AE model and depict the economy in its initial equilibrium, as you calculated above. (You do not need to include the Consumption line).

C. At equilibrium, what is the amount of consumption spending?

D. At equilibrium, what is the amount of private saving?And public saving? Again, show your work.

F. List the leakages and injections and provide a numerical value for each of them at the equilibrium value you calculated above, demonstrating as you do so that "leakages = injections at equilibrium."