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Given the following information about the economy of the country . (7 Marks) Consumption function = C= 85+ 0.5Yd Investment function I =85 Government Spending

Given the following information about the economy of the country. (7 Marks)

Consumption function = C= 85+ 0.5Yd

Investment function I =85

Government Spending G=60

Net Taxes = T= 40+0.25Y

a)Solve for equilibrium income and consumption

b)How much does government collect in taxes when the economy is in equilibrium?

C) Comment upon the utility of National Income Model.

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