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The income identity for a closed economy says that Y-C+I+G Assume that in the Economy of Berkeley GDP (Y) is equal to 6,000 and consumption (C) is given by the equation C 600+0.6(Y - T). In addition, investment (I) is given by the equation 1 2, 000-100r where r is the real of interest rate in percent. Taxes (T) are 500 and government spending (G) is also 500. What are the equilibrium values of C, I, and r?

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ANSWFR Gniven Consumption (c) ะ. 2000-1001 C. boot 0.6(Y-T) 士ニ Toxes CT) Soo bovernment pendliy (G) 50o : Goot 06(6000-500 600 3300 Jui 6000-3900+ 2000-100Yr 500 6000 су00-toor 00 4eo T, 2000-100 γ T 2000 looxy 2e00 40o I /400 So Euilibrium Iivestmest 1600

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