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5. (14 points) Suppose the U.S. economy is characterized by the following equations: C = 170 + 9(Y-T) T= 300 1200 - 158 G= 400

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5. (14 points) Suppose the U.S. economy is characterized by the following equations: C = 170 + 9(Y-T) T= 300 1200 - 158 G= 400 M=1360 P=1.0 (MIP)' = L = 48 - 20 a. Find the equilibrium values of r and Y. (10 points) b. What is the value of consumption? (2 points) c. How much is the government surplus or deficit? Be sure to state if the government is running a surplus or a deficit. (2 points)

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