answer asap

You are given the following model that describes a hypothetical economy. (1) Consumption function: C = 80 + 0.75Yd (2) Planned investment: I = 49 (3) Government spending: G = 60 (4) Exports: EX = 20 (5) Imports: 1M : 0.05Yd (6) Disposable income: Yd = Y - T ('7) Taxes: T 2 20 (8)Plannedaggregateexpenditure:AE=C=I+G+EX-IM (9) Definition of equilibrium income: Y = AE Use the above information to answer the following: a) b) C) d) What is equilibrium income? What is the government decit? If government spending is increased to G = 75, what happens to equilibrium income? Explain using the govemment spending multiplier. Now suppose the amount of imports is limited to [M = 25 by a quota on imports. If government spending is again increased from 60 to 75, what happens to equilibrium income? Explain why the same increase in G has a bigger effect on income in the second case. If exports are xed at EX = 20. what must income be to ensure a current account balance of zero'?I