A.Calculate the equilibrium level of output.(2 marks)

B.If investment rises by 100, by how much would income change?(3 marks)

Assume the following equations for a macroeconomy:

C = 100 + .9Yd , I = 50, T = 0.2Y , X=100, Im = 0.22Y and G = 250

C.Calculate the following:

i.equilibrium level of output

ii.net exports and

iii.total consumption.(12 marks)

D.State whether the economy has a budget surplus/deficit. Find its value.(3 marks)

(Total 20 marks)

MACROECONOMICS SECTION B-converted [Compatibility Mode] - Microsoft Word X File Home Insert Page Layout References Mailings Review View a ? & Cut Times New Rom * 12 - A A" Aa En Copy AaBbCcI AaBbC AaBbCc] AaBbCci AaBbCcI AaBbCcI AaBbCcI AA Find Paste Format Painter BI U * abe X x' A y . A. Bac Replace 1 Body Text 1 Heading 1 1 Heading 2 1 Heading 3 1 List Para... 1 No Spaci... 1 Normal = Change Styles * Select Clipboard Font Paragraph Styles Editing Use the information provided in the table below to answer (A) and (B) ONLY: INCOME CONSUMPTION INVESTMENT 2000 1800 1000 3000 2600 1000 4000 3400 1000 5000 4200 1000 6000 5000 1000 7000 5800 1000 A. Calculate the equilibrium level of output. (2 marks) B. If investment rises by 100, by how much would income change? (3 marks) Assume the following equations for a macroeconomy: C=100 +.9Ya, I = 50, T =0.2Y , X=100, Im = 0.22Y and G = 250 C. Calculate the following: i. equilibrium level of output ii. net exports and iii. total consumption. (12 marks) D. State whether the economy has a budget surplus/deficit. Find its value. (3 marks) Page: 3 of 3 Words: 456 English (U.S.) 11 8 3 110% + Type here to search a W 5:30 PM ENG 5/31/2021