Question

1. The consumption function, investment function, government function, and net export functions are given as follows:...

1. The consumption function, investment function, government function, and net export functions are given as follows:

C = 100 + 0.8Yd , I = 200, G = 350, X = 500, IM = 100 + 0.2Y, T = 10 + 0.05Y

At what levels of national income will government budget be balanced?

At what levels of national income will trade be balanced?

What is the equation of the aggregate expenditure curve?

Calculate the equilibrium level of national income.

Calculate the multiplier.

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