. Suppose that the economy is characterized by the following behavioral equations: C = 160 + 0.6YD, I = 150, G = 150, T = 100.• a. Solve for equilibrium output. Compute total demand. Is it equal to production? Explain.• b. Assume that G is now equal to 110. Solve for equilibrium output. Compute total demand. Is it equal to production? Explain.• c. Assume that …
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