Consider an economy described by the following parameters:

C=1000+0.8yd

I = 1300

G=2000

X =600

M = 100

T = 1000

i)What will be the value of the equilibrium GDP in the economy above (6 marks)

ii)Calculate the value of the multiplier (2 marks

iii)Is the economy experiencing a trade deficit or surplus? Explain your answer (2 marks)