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h Suppose you have the following macroeconomics data (all units are millions of US dollars). C = 260 + 0.4*(YT). Government spending, G = 200

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h Suppose you have the following macroeconomics data (all units are millions of US dollars). C = 260 + 0.4*(YT). Government spending, G = 200 Tax on consumption, T = 150 Export, X = 30 Import, M = 50 National saving, S = 260 Full employment real GDP: Y" = 1,220 1. Derive the aggregate expenditure expression, AB = a0 + a1 * (Y T), where a0 and al are constants to be determined. (1 mark) 2. Find the equilibrium level of real GDP (Y) and the multiplier, k. (1 mark) 3. Graph the AE curve and the Y\" on the same diaiam and Show all critical points including the equilibrium level of real GDP (Y). What will be the macroeconomic sult? (2 marks) _ 4. Let export decrease by 60%. How can the government counterbalance (numerically) the decrease in export by using tax as a policy instrument? (1 mark)

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