Solve two macroeconomics problems concerning a small closed economy in the long run, and a small open economy in the long run.
Calculate and show work for finding a few calculations.
Graph the National Savings and Investment functions before and after an increase in taxes for both economies.
FYI – I attempted some of the first problem but have a feeling I am wrong…please correct it and show work! (I think I am wrong because I think it is unusual how, after calculating the new answers after the tax increase, the values remain the same as before the tax increase…)
More detailed instructions on the document!