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I would like to know the answer (c) and (d) in particular if possible along with graphical explanation. (a). Y = 6,000, S-private: 2,000. S-public:
I would like to know the answer (c) and (d) in particular if possible along with graphical explanation.
(a). Y = 6,000, S-private: 2,000. S-public: 0, S-total: 2,000
(b) i. I(unplanned) = 2,000; production will be lowered in next period.
ii. C = 4,000, S-total: 4,000, S-total = I-total; S-total ? I(planned)
(c) i. New equilibrium level of income = 8,000; L = 800
Don't know how to approach and answer from (c) ii and (d)
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