With Trade and Taxes
i. Model
1. Y = C + I + G + X - M
2. C = 2000 + .75(Y-T)
3. T = .5Y
4. I = 5000
5. G= 1000
6. X = 1000
7. M = 1000 + .1Y
ii. Questions
1. What is the equilibrium level of output Y?
2. What is the spending multiplier?
3. If Autonomous investment increases by 100, by how much will output Y increase?
4. If autonomous government spending increases by 100, by how much will output Y increase.