Assume in a closed economy:
C = 40 + 0.8(Y - T)
G = 10
I = 20
T = 0, where T are taxes.
(a)Calculate Y at equilibrium.
(b)Calculate C, I, and G at equilibrium.
(c)Now assume the economy is open with exports and imports activities,

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The Answer of Assume in a closed economy:
C = 40 + 0.8(Y - T)
G = 10
I = 20
T = 0, where T are taxes.
(a)Calculate Y at equilibrium.
(b)Calculate C, I, and G at equilibrium.
(c)Now assume the economy is open with exports and imports activities,

Assume in a Closed Economy