Your island economy has been thriving for many years now and has grown large, with many people, services, goods, and trade available. In your island economy, you currently have no government. You know the following information:

People seem to spend about 80% of their income.

People import (from a neighboring island!) about 15% of their goods and services.

Business Expenditure is currently at $2,000.

Exports/year is worth $1,000

1. Determine the current level of equilibrium GDP and graph it below: