1. Solve for the equilibrium level of Y
2. Solve for the equilibrium level of C
3. Solve for the equilibrium level of S
4. Let Y* equal $16,000, using fiscal policy (G) move the economy to Y*
5. Let Y* equal $16,000, using fiscal policy (TR) move the economy to Y*
6. What will be the impact on the government Deficit/surplus, assuming the government choses to use G? ( Assume the economy moves form the original position to Y* using deltaG)
7. Graph the process, using the Keynesian Cross Model
8. Explain the first four rounds in the adjustment process from the original equilibrium to potential GDP (Y*).

NX Co Go O C O 400 0.25 0.8 400 2000 2800