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Unformatted text preview: borrowers) Education systems Transportation systems (roads, highways.) Communication systems Potential Real GDP: The level of GDP attained when all rms are producing at capac-ity. 84% Capacity Utilization Rate (some industries are dyeing and some growing) 5% Unemployment Rate Growth in potential real GDP is estimated to be 3.5% a year The Macroeconomics of Saving and Investment Recall: Y=C+I+G+X-M Assume closed economy, X=M=0 Y=C+I+G Rearrange: I=Y-C-G S=S private +S public S=(Y+TR-C-T)+(T-G-TR) = S =Y-C-G (savings =investment)...
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This note was uploaded on 04/15/2008 for the course ECON 102 taught by Professor Drozd during the Spring '08 term at Wisconsin.
- Spring '08