Question: Suppose the following table shows consumption (CC), investment (II), government purcnxnxhases (GG), and net exports (NXNX) in a hypothetical economy for various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.
Use these formulae, or variations thereof. and the given data to address the questions:FORMULAE: sd=1d+NxNx=Y-(Cd+1d+G)DATA: autonomoue consumption =2000,MPC=0.4,Tx=3500Id=1500,G=2000,Nx=-500QUESTIONS:a. Solve for Cd,Y, and Sd.b. Prove that the 2 given formulae are equivalent equilibrium conditions.c.
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