SECTION II (20 marks): Answer all parts of the question. When you answer using a diagram, explain and label the axes carefully. Answers must be given in the space provided below each question. Please show all working for each part of the question. An economy is described by the following equations: C =500 + 0.85(Y - T), Cis consumption, Y is income and 7 is taxation M=0.05Y Imports IP = 1500, planned investment G = 400, government spending T = ty, t = 0.2 is the marginal tax rate and exogenous taxes, X = 1200, X is exports TT= 0 (i) On a Y-PAE diagram, draw the short run equilibrium for this economy. Label your diagram carefully, calculating and showing: (i) the intercept and slope of the planned aggregate expenditure curve and (ii) the equilibrium level of output. (6 marks) (ii) On an injections-withdrawals diagram, draw the short run equilibrium for this economy. Label your diagram carefully, calculating and showing: (i) the intercepts and slopes of the injections and withdrawals curves and (ii) the equilibrium level of output. (6 marks)