Question: C = 160 + 0.6YD I = 150 G = 150 T = 100 a. Solve for equilibrium output. Calculate total demand. Is it equal

C = 160 + 0.6YD I = 150 G = 150 T = 100

a. Solve for equilibrium output. Calculate total demand. Is it equal to production? Explain. b. Assume that G is now equal to 110. Solve for equilibrium output. Calculate total demand. Is it equal to production? Explain. c. Assume that G is equal to 110, so output is given by your answer to (b). Calculate private plus public saving. Is it equal to investment? Explain

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