The economy of Trinoland is represented by the following variables.

Consumption function:C = 9,000 bn + 0.4Yd

Investment function:I = $1,200 bn

Government spending:G = $3,000 bn

Net taxes:T = $2,500 bn

Export:X = $5,000 bn

Import:M = $4,000 bn

a. Calculate the equilibrium level of income in the economy.Please show your working clearly.

b. Draw the aggregate expenditure curve, indicating clearly the equilibrium level of income.

c. Calculate the autonomous spending multiplier in this economy?Please show your working clearly.

d. Discuss the effect of an increase in autonomous investment of $4,000 bn on the equilibrium income.Calculate the new equilibrium income and incorporate into the earlier graph which you have drawn in (b), to illustrate the effect of the increase in investment

e. If $24,000 bn is the "full employment" level of income, and the government's goal is full employment, by how much must government spending (G) increase in order for the economy to reach the 'full employment' level of income?

f.Instead of increasing government spending, the government decides to lower net taxes (T) to bring the economy to the "full employment" level of income of $24,000 bn.By how much must net taxes (T) decrease in order for the government to achieve its goal?

g. Explain why there are differences in the size of the change in G and change in T in parts (e) and (f) to achieve the same 'full employment" level of income.