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).

Calculate total autonomous spending for economy X.

Calculate the multiplier for economy X.

Calculate the equilibrium income for the economy. ( Use the multiplier method).

Calculate the budget surplus or deficit at the equilibrium level of income.

Calculate the change in equilibrium income if the government decides to increase expenditure to R500.

Calculate the equilibrium income for the economy.