An economy is currently in equilibrium. The following figures refer to elements in its national income accounts.

	£ billions
Consumption (total)	60
Investment	5
Government expenditure	8
Imports	10
Exports	7

(a)  What is the current equilibrium level of national income?

(b)  What is the level of injections?

(c)  What is the level of withdrawals?

(d)  Assuming that tax revenues are £7 billion, how much is the level of saving?

(e)  If national income now rose to £80 billion and, as a result, the consumption of domestically produced goods rose to £58 billion, what is the mpc_d?

(f)  What is the value of the multiplier?

(g)  Given an initial level of national income of £80 billion, now assume that spending on exports rises by £4 billion, spending on investment rises by £1 billion, whilst government expenditure falls by £2 billion. By how much will national income change?

(h)  Given this new level of national income, assume that full employment is achieved at a national income of £100. Is there an inflationary or a deflationary gap?

(i)   What is the size of this gap?