In the Federal Economy of NIKIFOROS the following economic relationships hold for the fiscal year 2022 2023.

C=122+0.24Y_d I_P = 60 0.05i

S_P=90+ 0.04i

G=190 Y=C+I+G+(XM) [GDP]

X = 580 + 0.19Y M=500 0.08Y

T=0.31Y Yd=YT+R [DisposableIncome]

R=70

MS=1,200 MS=MD

MDT=0.35Y

MDSP=18Y0.09i MD=MDT+MDSP+ MDP

MDP=300

CalculateGDP,PublicBudgetConstraintAccount,CurrentAccount,CapitalAccount

andotherrelatedfactors.

1. Establishtheequilibriumlevelsofi*andY*anddiscusstheISandLMCurvesrespectively.Alsofindtheoptimumvaluesforallothereconomicvariablesofthe NIKIFOROS economy. Draw all the necessary diagrams to support your answers. (50 marks)