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1 what is the equilibrium level of output y 2 what is the

With Trade and Taxes

i. Model

1. Y = C + I + G + X - M

2. C = 2000 + .75(Y-T)

3. T = .5Y

4. I = 5000

5. G= 1000

6. X = 1000

7. M = 1000 + .1Y

ii. Questions

1. What is the equilibrium level of output Y?

2. What is the spending multiplier?

3. If Autonomous investment increases by 100, by how much will output Y increase?

4. If autonomous government spending increases by 100, by how much will output Y increase.

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Basic Computer Science: 1 what is the equilibrium level of output y 2 what is the

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