Please help with both question 1 and 2

1.1 Aggregate expenditure (AE) model in an open economy ~~ due by Oct 18 (Tue) Consider an open economy characterized by the following equations. consumption: C = 350 + 0.8(Y T) investment: I = 200 government purchases: G = 300 net exports: NX = 150 0.05(Y T) aggregate expenditure: AB = C | I + G + N X In equilibrium, income/output (Y) equals aggregate expenditure (AB) . 1. Suppose the government nances its purchases (G) by scal reserves without raising taxes (i.e., T = 0). (a) Compute the equilibrium values of output (Y) , consumption (C) , and net exports (N X ), as well as private saving (Smm'e) , public saving (Spubi'lc) , and national saving (S) . (b) Suppose the government wants to achieve exact trade balance (i.e., N X = 0). i. Does it have to increase or decrease its expenditure (G) and by how much? ii. 'What is the value of the government-expenditure multiplier? 2. Suppose the government uses balanced-budget policy, nancing its expenditure by lump-sum taxes (i.e., G = T). (a) Compute the equilibrium values of output (Y) , consumption (C) , and net exports (N X ), as well as private saving (Swwm) , public saving (Spubc) , and national saving (S) . (b) Suppose the government wants to achieve the same output level as in the notax case in 1 (b) above. i. Does it have to increase or decrease its expenditure (G) and (lump-sum) taxes (T) with G = T and by how much? ii. What is the value of the balanced-budget multiplier? iii. In the notax case in 1(b) , the G-policy can eliminate any trade imbalance (i.e., make N X = 0). Would the government be able to achieve exact trade balance as well under the balanced-budget policy here? If not, would there be a trade surplus or trade decit, and how big is the surplus/decit