You are given the simple open economic model:

C + I + G + (X-M) = GDP = AI = C + S + (T- R).

Please derive the relationships that this model implies for the Government Budget, International Trade Balance (X-M) and Market for Non Current Consumption (I-S).

What happens to the model if we impose a Mandatory Government Balanced Budget? 

What would an International Trade Surplus imply for the Government Budget if our Non-Current Consumption Market is in Balance? Show analysis and calculations.