3. What kind of values can c, take? For questions 4-6, suppose that the economy is characterized by the following equations: O. CYTIGT=+ -== = C = 160+ 0.6 (Y - T) 1 = 150 G = 150 T = 100 4. Solve for the value of real GDP in equilibrium, i.e. .Y* 5. Solve for disposable income, Y, = Y - T 6. Solve for consumption expenditures *) in equilibrium. For questions 7 - 13, consider the following AE/Keynesian Model: Suppose that we are in a small open economy in which aggregate expenditures, AE, is the sum of consumption spending by households, investment spending by firms, government expenditures and net exports. You may assume that net exports are independent of real GDP and taxes are lump-sum. The numbers in the table below are in billions. Real Government Net Aggregate GDF Consumption Investment Expenditures Exports Taxes Expenditures 1,000 1,300 200 150- 50 100 A 2,000 8 200 150-50 100 2,400 3,000 2,900 200 190 -50 100 3,200 4,000 9.700 200 190-50 100 4,000 5,000 4,900 200 150-50 100 4,800 7-8. For the table above, calculate the missing values, A and B. 9. From the table above, what kind of situation is the country in with regards to the trade balance (i.e. do we have a trade surplus or deficit or balanced trade)? What kind of situation is the country in with regards to the domestic balance (i.e. is the government running a budget deficit or budget surplus or balanced budget)? 10. Use the table above to calculate the slope of the AE curve. [Hint: Recall that the slope of the AE curve is the additional increase in aggregate expenditures arising from an increase in GDP.] 11. Recall that the Aggregate Expenditure function is written as: AE = AE, + (slope of AE) * Y where e AE, is Autonomous Expenditures. Use the table in and your answer to question 10 above to calculate Autonomous Expenditure AE,. [Hint: Calculate induced expenditures for any given level of GDP, and use your answer to figure out AE] 12. In the table above, what is the value of real GDP in equilibrium