How to find equilibrium GDP with various tax rates?
How do I put these equations together to figure this out?
Government purchases, taxes and net exports are all zero.
C = 300 + 0.75y
Investment spending depends on the rate of interest
I =1000 - 100r
What is equilibrium GDP at
2% (r =0.02)
5% (r= 0.05)
10% (r= 0.1)