Suppose the goods market is represented by the following behavioural equations. C = 500 + 0.5YD 1 = 500 - 2000r + 0.1Y G = 500 X = 0.1Y* + 100e Q = 0.1Y - 100e T = 400 Y* = 1000 r = 0.05 (5%) e = 1 where Y= GDP, C=consumption, YD=disposable income, I=investment, G= government expenditures, T=taxes, X=exports, Q=imports, Y*=foreign GDP, r=real interest rate, and e = real exchange rate. 1. Calculate equilibrium value of GDP (Y) [ Hint: Use: Z = C + | + G + X - eQ and Y = Z in equilibrium, then solve for Y]. 2. What are the equilibrium values for C, I, X and Q? 3. At the equilibrium output above, is the economy experiencing a trade balance, surplus or deficit? Calculate the amount. 4. Suppose G increases by $100 (to. $600). Calculate the new equilibrium level of output. What is the size of the government expenditure multiplier? 5. Based on your answer to d, calculate the new level of Q. Calculate the change in net exports caused by this increase in G. Is there a trade balance, surplus or deficit