Economy Data Analysis

Consider an economy with the following data:
Consumption expenditure = $171,701.1 million
Planned investment = $119,020.5 million
Government expenditure = $48,621.7 million
Export expenditure = $840,223.9 million
Import expenditure = $720,695.8 million
Autonomous taxes = $206,700.0 million
Income tax rate = 17.5%
Marginal propensity to save = 0.42
Marginal propensity to import = 0.08
Section A
Part (1)
Calculate the level of autonomous consumption when the level of income
equals $466,312.6 million (solve to one decimal point).
Autonomous expenditure
MPS (Mariginal propensity to
save ) 0.42
MPC 1-MPS 0.58
Consumption function (C) c+0.58Y
Where,
Y Level of income
c(Automomous consumption) Automomous consumption
Y = C+I
466312.6 = C+0.58(466312.6)+119,020.5
466312.6 = C+270461.3+119,020.5
466312.6 = C+389481.8
c= 466312.6-389481.8
c= 76831
Part (2)
Calculate the level of total taxation when the level of income equals
$466,312.6 million (solve to one decimal point).
Income 466312.6
Tax rate 17.50%

Level of taxation 466313*17.50% 81604.7
Part (3)
Calculate the level of actual investment when income is equal to
$466,312.6 million and the unintended inventory investment (solve to one
decimal point).
Y= C+Ip+G
466313 = 171701+Ip+48622
466313 = 220323+Ip
Ip = 466312.6-220323
Ip = 245989.6
Actual investment
Planned Investments (I) + Unplanned
investments (Ip)
119020.5+245989.6
Actual investment 365010.1
Part (4)
Calculate autonomous imports when income is equal to $466,312.6 million
(solve to one decimal point).
Autonomous Import (M) 0+MPM(Y)
0+0.08(466312.6)
Autonomous Import (M) 37305
Part (5)
Calculate autonomous net exports (solve to one decimal points).
Autonomous net exports
Exports-Autonomus imports 840223.9-37305.0
802918.9
Part (6)
Calculate autonomous planned expenditure (solve to one decimal point).

Autonomous spending (Eo)
Eo = C+I+G+NX
Eo = 458871.3
Where,
NX Net exports
NX= X-M
840223.9-720695.8
119528.1
Part (7)
Is this economy in equilibrium when income equals $466,312.6 million? If
not, what is the equilibrium level of income for this economy? (solve to
one decimal point).
Y= C+I+G
171701.1+119020.5+48621.7
339343.3
Part (8)
Illustrate this economy using the aggregate expenditure model. On your
diagram, identify the equilibrium level of income as calculated in part 7
and the actual level of income ($466,312.6 million). Identify the vertical
distance that represents unplanned inventory investment calculated in
part 3.
Ensure you label all axis and each component (line) you draw in your
diagram.
According to this model, explain how this economy will move to the
equilibrium level of income. (100-word limit)
In accordance to aggregate expenditure model, equilibrium is stated
as the point where an aggregate expenditure and the supply curve
intersects. A rise in an expenditure by the consumption or an investment
causes an aggregate expenditure rises which pushes an economy towards
higher level of equilibrium.