Make sure to write down all steps. Your answers should be rounded tothree decimal places

For a given price level of P=1, the economy of Atlantis can be described as follows

C = 150 + 0.7YdI = 200

G = 70EX = 0

IM = 0.1YdT = 60

1. Calculate the level of income at which the goods market is in equilibrium.
3. Suppose the government of Atlantis decides to raise taxes to balance the budget. Calculate how this affects the equilibrium in the goods market at this price level?
5. Explain whether the effect of this increase in taxes on would have been different if Atlantis was a closed economy. Support your explanation with precise calculations.
7. To derive the equilibrium in the economy of Atlantis, we need to consider the effect of changes in the price level. Both consumption and investment are influenced (negatively) by prices.
8. C = 170 + 0.7Yd - 20PI = 230 - 30P
9. Firms in Atlantis set their prices as follows: P = 1 + 0.001Y
10. Derive at what level of income and prices the economy of Wakanda is in equilibrium.