Consider an economy where the various components of expenditure follow these equations: C = 10 + 0.8? I = 100 5.0001' G = 150 X = 0 M = 0 The money supply ls equal to 500 and money demand satisfies the following equation: Md = Y 2.5001- money demand satises the following equation: M1 = l' 2.5001\" c. Calculate the equilibrium level of GDP and the Interest rate in this economy. d. Suppose that the economy is now open to International trade. Exports and Imports are now respectively described by the following equations: X = 50 M = 0.1V Calculate the impact of opening the economy on the equilibrium level of GDP and the interest rate and use appropriate diagrams to explain the result. e. Using relevant diagrams, explain the short~run impact of an increase in exports on aggregate output and the price level, and the mechanisms by which output will eventually return to its natural level