Question: For a simple Keynesian model, the following information is given. Study the information to answer the succeeding questions. C = 350mil + 0.85Yd I= 175mil

For a simple Keynesian model, the following information is given. Study the information to answer the succeeding questions.

C = 350mil + 0.85Yd

I= 175mil

G= 300mil

Yf = R3100 million

1 What are the components of aggregate spending (A) in the model? (In your answer you should provide each component with its corresponding symbol) (3)

2 Explain what is meant by investment spending.

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1. Background knowledge of the subject and

4. What specific changes in the environment have taken place in relation to the information we have collected?

2. The purpose of the acquisition of the information.