Question: Can you please help me answer A-D? Consider the following planned aggregate expenditure model with proportional taxes and an open economy: Planned Investment I=$2.5 trillion

Can you please help me answer A-D?

Consider the following planned aggregate expenditure model with proportional taxes and an open economy: Planned Investment I=$2.5 trillion Government spending G=$1.5 trillion Taxes are proportional to GDP with t=0.10 Consumption function, C(Y-T)= and $2 trillion + 0.8((1-t) Y) Export= $2 trillion Import= $1 trillion +0.6Y A. What is the equilibrium level of output? B. What is the level of consumption at the equilibrium level of output? (What is the equilibrium level of consumption?) C. What is the level of savings at the equilibrium level of output? D. Is there a government surplus or deficit (how large is it?)

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