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Question 3 4 Suppose that the economy is characterized by the following behavioral equations: C 140 +0.75YD 140 G-220 T-110 A. Solve for equilibrium output.

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Question 3 4 Suppose that the economy is characterized by the following behavioral equations: C 140 +0.75YD 140 G-220 T-110 A. Solve for equilibrium output. Compute total demand. Is it equal to production? Explain 8. Calculate disposable income (Yp) and consumption spending (C). C. Assume that G and increase by 25. What is the change in equilibrium output? Compute total demand. Is it equal to production? Explain. D. Assume that output is given by your answer to (C). Compute private plus public saving, is the sum of private and public savings equal to investment? Expla

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