Assistance with the following a. Consider an economy described by the following equations: Calculate and use a diagram to demonstrate the equilibrium interest rate Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75((Y-T) I=1,000-50r b. If G increased by a 1000 using a diagram please explain and calculate the new equilibrium interest rates.

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 11CQ
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Assistance with the following a. Consider an economy described by the following equations: Calculate and use a diagram to demonstrate the equilibrium interest rate Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75((Y-T) I=1,000-50r b. If G increased by a 1000 using a diagram please explain and calculate the new equilibrium interest rates.
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