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Consider the imaginary small country of Auyuittuq. Assume that Auyuittuq is closed to trade, so that its net exports are equal to zero. Suppose that
Consider the imaginary small country of Auyuittuq. Assume that Auyuittuq is closed to trade, so that its net exports are equal to zero. Suppose that the economy is described by the following consumption function, where C is consumption, Y is income (real GDP), IP is planned investment, G is government purchases, and T is taxes: C = $25 billion+0.75(Y - T) Suppose G=$130 billion, IP=$60 billion, and T=$20 billion
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