申論題

3. Consider an economy described by the following equation:
Y = C + I + G
C = 100 + 0.75 (Y – T)
I = 500 – 50 r
G = 125
T = 100
Where Y is GDP, C is consumption, I is investment, G is government purchase, T is taxes, and r is the
interest rate. If the economy were at full employment, GDP would be 2,000.

(2) How does GDP compare to the full-employment level? Is there a gap?