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2. Suppose that in the Australian economy mpc = 0.7, mpm = 0.1, and t = 0.2; and that the following figures are in billions of Australian dollars: C = 1950 I =800 G = 900 EX = 380 IM = 250 T=220 TRP = 210 Recall: Y = [1/(1-mpc+(mpc*t)+mpm)]*[ C -mpc*7 + mpc*TRP + I +G +EX -IM ] A) Assume that C and I decrease by $250 billion and $75 billion, respectively, due to higher interest rates, and that the government increases TRP by $40 billion. By how much will the Australian real GDP change (AYAUS)? Be specific about the sign of the change. Show your work and BOX IN your answer. [5 points] B) If 60% of Australian imports come from New Zealand, by how much will the change in Australian real GDP (AYAUS), above, change Australian imports (AIMAUS), New Zealand's exports (AEXNZ) and real GDP (AYNZ)? Consider the following parameters for New Zealand: mpc = 0.6, mpm = 0.2 and t = 0.2. Be specific about the sign of the changes. Show your work and BOX IN your answers. [10 points] AIMAUS AEXNZ AYNZ