Question: c. What does this mean for net exports? Write the formula for net exports as a function of exports and imports explicitly. d. Equilibrium capital

c. What does this mean for net exports? Write the formula for net exports as a function of exports and imports explicitly.

d. Equilibrium capital is 500 machines, and the real rental rate of capital is 20. What is the total income that goes to capital suppliers? Write this mathematically and show this equilibrium point using the demand and supply for capital. Label the axes correctly.

e. Find equilibrium real wage and labor if labor supply is fixed at 110 and total output is $11215.5. Show this equilibrium point using the demand and supply for labor. Label the axes correctly.

f. Now consider taxes are 10% of total income. Find disposable income. Compute consumption if MPC = using C = MPC* DI.

g. G is fixed at 100.

h. What is equilibrium investment and real interest rate if I = 1000/r.

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