Term of type of budget and type of economy

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Suppose that the economy of an island H is described by the following equations: GDP (Y) = 8000, government expenditures (G) = 600, Taxes (T) = 1000, Consumption (C) = 400 + 3/4 (Y-T), and investment (I) = 800 – 200r a. Write the equation of the GDP b. Compute 1. Private saving 2. Public saving 3. National saving 4. Equilibrium interest rate 5. What can you conclude about the economy of Island H (in term of type of budget and type of economy?) Explain why.

Reference no: EM131164513

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