3.Consider an economy described by the following equation: Y = C + I + G Y = 6,000 G = 1,500 T = 1,500 C = 600 + .3(Y – T) I = 1,000 – 50r a.What are the equilibrium values of C, I, and r? b.What are the equilibrium values of private savings, public savings, and national savings? c.If Taxes decrease from 1,500 to T = 1,000, find the new equilibrium values of C, I, and r. Also, find the new equilibrium values of private savings, public savings, and national savings.

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Data Y C I G I Y C G Y 6000 G 1500 T 1500 C 600 3Y T I 1000 50r 50r I 1000 r I 1000 50 a... View the full answer