Suppose the economy of Clintonia has the following macroeconomic relations: Consunption function: C = 2,000 + 0.75 (Y - T) Investment function: I =...

1.     Suppose the economy of Clintonia has the following macroeconomic relations:

Consunption function:     C = 2,000 + 0.75 (Y - T)

Investment function:        I = 12,000 - 1,500 r

Govt. spending:                G = 23,000;                           Exports: X = 4,000

Import function:              M = 5,000 + 0.1 Y;

Tax function:                   T = 5,000 + 0.20Y

Money demand function: Md = 0.50 Y - 3,500 r;

Money supply:                 Ms = 31,400                           Potential output:  Yp = 63,400

Equilibrium condition for real sector: Y = C + I + G +(X - M)

What is the equilibrium equation .... y=______-______r

C = 2000 + 0.75(Y - T) = 2000+0.75(Y-5000-0.20Y)=2000+0.75(0.8Y-5000)G = 23000I = 12000 - 1500rX-M = 4000 - 5000 - 0.1Y= -1000 - 0.1YY = C+G+I+(X-M)Y= 2000+0.75(0.80Y-5000)+23000+12000 -1500r...