Consider an economy with the following data:

Equilibrium income = $212.38 b

Consumption expenditure = $155 b

Planned investment = $19 b

Government expenditure = $27 b

Export expenditure = $86 b

Import expenditure = $73 b

Autonomous taxes = $8 b

Income tax rate = 19%

Marginal propensity to save = 0.3

Marginal propensity to import = 0.1

Part (1)

If income currently equals $240b calculate the level of autonomous consumption (solve to two decimal places).

Part (2)

Calculate autonomous net exports when income is equal to $240b (solve to two decimal places).

Part (3)

Calculate the level of actual investment AND unplanned investment when income is equal to $240 b (solve answers to two decimal places).

Part (4)

Illustrate this economy using the aggregate expenditure model assuming that actual income is $240 b and equilibrium income is $212b. On your diagram, identify as required the vertical distance that represents unplanned investment calculated in part 3.

Ensure you label all axis and each component (line) you draw in your diagram