Business, 11.05.2021 16:30 Webber07

Consider an economy described by the following equations: Y=C+I+G
C=120+0.8(Y-T)
I=500-50r
G= 150
T= 125

where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate. If the economy were at full employment (that is, at the natural rate of output), GDP would be $2,850. Identify the equation(s) each of the following statements describes.

a. It is an autonomous amount, independent of other factors.
b. It is a function of disposable income.
c. It depends on the interest rate.

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Consider an economy described by the following equations: Y=C+I+G
C=120+0.8(Y-T)
I=50...