1. Let us consider an economy characterized by the following equations: G = go + 91(Ye - Y) T = to +t,Y C = Co + CYD I = bo +bY YD E Y - T where go, gusto, t, Co, C1, bo, b, are constant positive coefficients, G, Y, Y,, T, C, I, T are positive endogenous variables and Y is a positive exogenous variable that stands for the expected production/output level. In this economy, production/output Y always adjusts to meet demand Z. a. Using the above equations, write down the equations of the aggregate demand for goods: Z, private saving and government saving as functions of the relevant coefficients and the exogenous variable. How does the expected output/income level y affect Z , private saving and government saving? Explain. (10 Points) b. Write down the equilibrium condition in the goods' market. Derive the equilibrium output/income level Y as a function of the relevant coefficients and Y. (4 Points) c. Which condition(s) guarantee the existence of a unique, positive and attainable equilibrium output/income level? (3 points) d. Derive the equilibrium output/income level Y when y = Y. (3 points)