Please see below the spending information pertaining to the participants of a hypothetical economy. C = $10+ 0.8Y I = $2

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Please See Below The Spending Information Pertaining To The Participants Of A Hypothetical Economy C 10 0 8y I 2 1 (38.6 KiB) Viewed 39 times

Please see below the spending information pertaining to the participants of a hypothetical economy. C = $10+ 0.8Y I = $20 G=$30 X-M= $10 . State the name of the economic agent/participant that each equation above would apply to. State the assumptions underlying the equations for C and I. Why do we make these assumptions? Calculate the value of equilibrium output. (Hint: In equilibrium: AD=Y). Assuming that the full-employment level of output is $300, what kind of gap exists and how large is it? Identify the gap on a graph that shows AD & AS model. What type of policy would you recommend to the policymakers to achieve full- employment level of output? Why? What could be some of the concerns associated with your policy proposal?