Consider an economy where the various components of expenditure follow these equations: C = 100 + 0.BY I = 200 G - 100 X - 400 M = 0.2Y Calculate the equilibrium level of GDP in this economy in the short- run. (20 marks) Suppose that a boost in output in the rest of the world causes an Increase in the country's export to X" = 800. Calculate the effect of the increase in exports on the equilibrium level of GDP as well as on the trade balance of the country. (30 marks) [ill] How would the results in (ij] change if the economy had a marginal propensity to import equal to 0.6? Discuss your findings. (20 marks) (iv) Discuss the following statement: 'A monetary expansion leads to a deterioration of a country's trade balance." (30 marks)