Q# 2. Suppose you have the following information about a closed economy: C = 50 + 0.80 Y I =150 G = 175 Where C is consumption, I is investment, G is Government expenditure and Y is income.

a.Find out the equilibrium level of income.

b.Suppose I increases to 210 what is the new equilibrium level of income?

c.What level of G is needed to achieve a target income of 4850?

d.Q#4. Calculate GDP:

e. Consumption (C) 310 Investment (I) 115 Government purchases (G) 60 Exports (X) 305 Imports (M) 245.