Assume C50+06YT G15 I15 T01Y EX4+3EPP IM8+01Y.pdf

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Assume C=50+0.6Y-T G=15 I=15 T=0.1Y EX=4+3E(P*/P) IM=8+0.1(Y-T)-2E(P*/P) E=3; P*=1 and P=1.5 Calculate the GNP of the country if it is in Autarky Calculate the consumption in Autarky Calculate Tax revenue T What range must the tax revenue level be in to incentivize the Government to issue new debt? What is the total savings in this economy?.

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