Answer to Question #21923 in Macroeconomics for idowu taiwo

Question

you are given the following information about an open economy with government activity
C=50+0.9Yd
I=20+0.15Y
M=5+0.15Yd
T=10+0.15Y
government expenditure & export are autonomous. If the initial level of national income is 2000
(a)find the value of X when G=T
(b)show how an increase of 45 in autonomous part of the import function will affect Y
starting from the situation (a) above, show how an increase of 60 in G & in the autonomous part of taxation will affect Y.