7.Consider a closed, simple economy (not necessarily at full employment) with no government, characterized by the following equations, (C is Consumption, Y is household Income, and I is Investment):

C = 200 + .75(Y)I = 300

a. Graph the Consumption, Investment, and Aggregate Expenditures Functions.

b. On the Graph, label the point where Savings = 0, the point of equilibrium income.Then, derive the values for these using the equations above.

Savings = 0, Consumption= Income =____________ Equilibrium Income = _____________

c. At Equilibrium, how much are consumers saving?Investment?

Equilibrium Savings = ___________Equilibrium Investment = __________