Business, 20.12.2019 21:31 lisa123465

Suppose that the behavior of households and firms in an economy is determined by the following equations c=60+0.9yd, ii = 34, g = 25, t = 10+ 0.1y, tr=80, x=30, im=20 + 0.05y
a. calculate an expression for aggregate expenditure as a function of income ( enter your answer in the form: ae = a + by). note that in an open economy: ae=c+ii + g + x - im and pay attention to the
b. calculate the equilibrium level of output ( just enter the numeric value of output).
c. calculate the level of taxes in the economy ( just enter the numeric value of taxes).
d. is the government running a budget surplus or a budget deficit? surplus . calculate its size.
e. is the economy running a trade surplus or a trade deficit? surplus . calculate its size.

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