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IV Utopia is described by the following equations:
C=80+0.75YD I=115-10r T=-20+0.2Y M=20+0.05Y
YD= Y - T G=200 X=100
Money supply=450 Demand for Money=110+0.55Y-10r
F= -60+2r B= F+X-M
Calculate:
(a) Equilibrium output level and the equilibrium interest rate plus the position on the BoP
(b) What is the effect of increasing G by 310 and expanding money supply to 940.

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