Suppose C 100 0 75Y D I 500 G 750 taxes are 20 per cent of income ...........

Suppose C = 100 + 0.75Y D, I = 500, G = 750, taxes are 20 per cent of income, X = 150, M = 100 + 0.2Y. Calculate equilibrium income, the budget deficit or surplus and the trade deficit or surplus. (3 marks)

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