Question: Given the data below solve a-e AD = C + I + G + NX I = 600 - 40i M = 1400 C =

Given the data below solve a-e

AD = C + I + G + NX I = 600 - 40i M = 1400

C = 200 + (4/5)YD G = 240 P = 2

YD = Y - TA NX = - 40 md = (1/3)Y + 400 - 20 i

TA = (1/4)Y

a. Solve for the equilibrium level of Y and i

b. Solve for the equilibrium level of C

c. Solve for the equilibrium level of YD

d. Solve for the equilibrium level of S

e. What will be the level of crowding out if G increases by 25?

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