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Utopia is a closed economy and is characterized by the following equations: Consumption: C = 410 + 0.75(Y T) 1551' Investment: I = 1500 7201'

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Utopia is a closed economy and is characterized by the following equations: Consumption: C = 410 + 0.75(Y T) 1551' Investment: I = 1500 7201' Government spending: G = 2200 Taxes: T = 2100 Real money demand: 0.4le) = LO',i) = 0.5Y 200i Expected ination: it\" = 0 Production function: Y = 5K1'3L2" 3 Note: Interest rates, i and r, are expressed in decimal points, i.e., if r = 0.075, then r = 7.5%

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