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The information below represents values for the various market participants. C = $25 + 0.75Yd I g = $50 G = $70 X = $140

The information below represents values for the various market participants.

C = $25 + 0.75Yd

Ig = $50

G = $70

X = $140

M = $130

  1. Assuming that the full-employment level of output is $500:
    1. what kind of gap exists?
    2. What is the size of the gap?

  1. How much are consumers saving at full employment?

  1. What is the equilibrium value for a public open economy?

  1. What is the equilibrium value for a public closed economy?

  1. What is the value of our multiplier?

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