Suppose that the government of Ansonia is experiencing a large budget surplus with fixed government expenditures of G = 250 and fixed taxes of T = 200. Both G and T are independent of income. Assume that consumers of Ansonia behave as described in the following consumption function.

C=250 +0.80 (Y-T)

Suppose further that investment spending is fixed at I=200

Calculate the equilibrium level of GDP in Ansonia. Solve for equilibrium levels of Y, C, and S.

Y= ?

C=?

S=?