The following information is provided about an open economy with a government. Use theinformation to answer the questions that follow (round off your answers to 2 decimal places):

Autonomous Consumption = 465

Marginal propensity to consume = 0.6

Autonomous Investment =295

Government expenditure = 450

Exports = 225

Imports = 130 + 0.1Y

T = 0.2Y

Yf = 2 237.9

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Q.1.1Calculate the level of autonomous spending in this economy.(2)

Q.1.2Calculate the size of the multiplier.(4)

Q.1.3Calculate the equilibrium level of income.(2)

Q.1.4Calculate the tax revenue to the government of this country when the economyremains in equilibrium.(2)

Q.1.5Calculate what the equilibrium income should be if the government of thiscountry decides to cancel all taxes, implying the tax rate would now be 0%.(6)

Q.1.6Calculate the change in government spending required to reach fullemployment in the economy.