A. What is the equilibrium level of outputB. What is the equilibrium level of consumption C. What is the level of savings at the equilibrium level of outputD. Is there a government surplus or deficit? How large is it ?E. What is the GSM

Did you mean: Consider the following planned aggregate expenditure model with proportional taxes and an open economy: planned investment, I = $2.5 trillion; government spending G = $1.5 trillion; Taxes are proportional to GDP with t=0.10 (Thus total taxes will be equal to t multiplied by Y); the consumption function, C(Y- T)= $2 trillion + 0.8((1-t)Y); EX= 2 trillion; and I'M= $1 trillion +0.6Y