Finding Equilibrium in an open economy where: Consumption Expenditure: C=500+0.6YD Investment Expenditure: 1=200 Government Spending: G=500 Tax Revenues: T=tY=0.5Y Exports: 700 Imports: IM=100+0.1Y, Where m = 0.1, and t = 0.5 a. Calculate the AE Function. What is total autonomous expenditure? (3 pts) b. Calculate the equilibrium level of national economy in this economy. Calculate the consumption expenditure and saving level at the equilibrium level. What is the value of multiplier? (6 pts) c. If Y* = $2000, is this the same as the equilibrium Y in part b? How much Investment would have to change in order to close the difference? How would you encourage investment? (5 pts) d. Using the equilibrium Y in part b, what is the Tax revenue? What is the primary budget deficit? Is this a surplus or deficit? How would that affect the stock of debt? (6 marks)