17. In a Keynesian macroeconomic model of an economy with no foreign trade it is assumed that

    =++

    = 0.75

    = (1 )

where the usual notation applies and the following are exogenously fixed: = 600 , = 900, = 0.2 is the tax rate. Find the equilibrium value of and say whether or not the governments budget is balanced at this value.

19. In an economy which engages in foreign trade, it is assumed that

=+++

= 0.9

=(1)

and imports

= 0.15

The usual notation applies and the following values are given:

= 200 = 270 = 180 = 0.2

What is the equilibrium value of ? What is the balance of payments surplus/deficit at this value?