Hello, I am having trouble completing question 29-31.

Question 27 - Question 31: Use the income-expenditure model to answer the questions. Suppose a small open economy with fixed prices can be described by the following equations: Consumption C - 700 + 0.8YD; Government spending: G - 423 Planned investment: IPlanned - 372 - 3501 Taxes: T-0.15Y -70 Exports: X - 550 -30EPcnc Transfers: TR - 280-0.05Y Imports: IM -340 + 0.14Y + 30EFGDe NOTE: YD - disposable income. Unless otherwise stated, interest rate, i, is held constant at 0.1 (i.e., 10%) and exchange rate, Ercoc, is held constant at 10 (FC per DC). For each question, keep your answer to 2 decimal places if necessary and be sure to show your work. Question 27 Find the equilibrium level of output. Output: Question 28 - Question 31 The economy is in equilibrium as shown in Question 27. Now, suppose there is a correction in the housing market and house prices drops. As a result, autonomous consumption changes by 28 Hint: you need to decide whether autonomous consumption increases or decreases. Question 28 Find the change in equilibrium level of output. Change in output: MGEA06 Final Exam - Winter 2018 Iris Au Question 29 Suppose the central bank finds the change in output in Question 28 undesirable and wants to keep it at the initial level (the one in Question 27) via a change in interest rate, i. Find the change in interest rate that will achieve the goal. (Note: exchange rate remains unchanged at 10 FC per DC in this question). Change in interest rate (in % terms): Question 30 (Return to Question 28) Suppose the change in autonomous consumption causes the interest rate to change by 3 percentage points and the exchange rate to change by 0.25 FC per DC. Compared to the initial equilibrium in Question 27, find the change in equilibrium level of output. Hint: You need to determine whether interest rate increases or decreases, and whether DC appreciates or depreciates as a result of the change. The initial interest rate is 10% while the initial Epcoc is 10. Change in output MGEA06 Final Exam - Winter 2018 Iris Au 13 Question 31 (Continued from Question 30) Find the level of trade balance when the economy reaches its new equilibrium. Does the economy run a trade surplus or trade deficit? Trade balance: Trade deficit or Trade surplus