please solve

1 Question Consider an economyr characterized by the following equations: C IP 100 + 0.8 (Y T) 100 140, 0* = 150 o o 170, T" = 150 = 0 II II \"skate n where C is (private) consumption, Y is aggregate output, T is exogenous (lump sum) taxes, I P is planned (private) investment, G is government expenditure, M is imports, X is exports, and t is the income tax rate. Variables with an asterisk denote the componding foreign counterparts to the domestic variables without an asterisk. a) Calculate the multiplier. (3 points) b) Find short-run equilibrium output. (3 points) (2) A change in consumer preferences for foreign products leads to an increase in imports; as a result, M rises to 20. What happens to short-run equilibrium output? (4 points) d) Repeat part (0), still assuming the rise in M, but in addition assume that domestic planned investment has dropped so that IP = 80. (2 points) c) How do your results help to explain the businem cycle? How do they help to explain the tendency of recessions and expansions to spread across countries? (4 points) f) Now assume that M = 0.151\