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Please solve the simple Aggregate Demand model. AS =Y AD =C+I C=200+.6Y I =100 1.Algebraically solve for the equilibrium level of income Y* 2 .Derivethe

Please solve the simple Aggregate Demand model.

AS =Y

AD =C+I

C=200+.6Y

I =100

1.Algebraically solve for the equilibrium level of income Y*

2 .Derivethe Savings function.

3.Show at Y*,that Savings =Investment

4.What is the value of the multiplier in our simple model.

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