Use the following information on economy X to answer the questions below.

Consumption function: C = 350 + 0.6Y

Investment spending: I = 250

Government spending: G = 400

Exports of goods and services: X = 300

Imports of goods and services: Z = 150

Proportional tax rate: t =25%

(Note: Show all calculations and round off to 2 decimal places).

Q.4.1.1 Calculate total autonomous spending for economy X. (3)

Q.4.1.2 Calculate the multiplier for economy X. (3)

Q.4.1.3 Calculate the equilibrium income for the economy. (Hint: Use the multiplier method). (3)

Q.4.1.4 Calculate the budget surplus or deficit at the equilibrium level of income. (3)

Q.4.1.5 Calculate the change in equilibrium income if the government decides to increase expenditure to R500. (3)

Hi Tutors, This was an exam question I got yesterday and I totally got it wrong . Please help me