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Please answer this 1. An economy has full-employment output, Y, of 6,000. Government purchases, 6, are 1,200. Desired consumption and desired investment are: Cd =

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1. An economy has full-employment output, Y, of 6,000. Government purchases, 6, are 1,200. Desired consumption and desired investment are: Cd = 3,600 2,000r + 0.1Y Id = 1,200 4,000.:- where Yis output and r is the interest rate. a. Find an equation relating desired national saving, g, to rand Y b. Using both versions or forms of the goods market equilibrium, nd the real interest rate that clears the goods market. Assume that the output equals fullemployment output. c. Government purchases rise to 1,440. How does this increase change the equation describing desired saving? Show the change graphically. What happens to the market clearing real interest rate

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