Suppose you have the following information from a closed economy: C = 200+ 0.25 YD I = 150+ 0.25Y - 1000i T = 200 G = 250 ī= 0.05 a. Derive the IS relation. (Hint: The IS relation represents an equilibrium in the goods market, where Z=Y, use this t with an equation with (Y) on the left hand side, and (i) on the right hand side) b. Is this an economy where the CB sets the money supply (exogenous) or sets the interest (endogenous)? How would you represent the LM relation in equations?

The economy is described by the following functions: C = 110+0.8YD Tx = 20 Tr = 40 I = 70 G = 80 Nx = 30 Suppose transfers increase by 20. By how much would the equilibrium output increase?

President Biden has proposed a $2.2 trillion Infrastructure package to repair roads and bridges. The exact source of the funds is unclear at the time of construction of this exam, but some policy analysts think that at least one part of the funding will be an increase in the federal excise tax on gasoline. Suppose the size of this increase in excise tax is written as t.  Using a graph and equilibrium, analyze and explain the impact of this t dollars per gallon increase in excise tax on gasoline. Which of the curve(s), if any, would shift, and why? Graphically, show the new equilibrium price and quantity (labeling it P1 and Q1). At the new equilibrium, please determine how much of the tax increase was borne by gasoline consumers and how much was absorbed by gasoline sellers? Indicate the incidence of taxation for both consumers and sellers on the graph and explain. What will determine whether consumers or sellers will bear a higher relative burden of taxation? Please explain in detail.

I'm a newbie so please if you could go step by step. thanks in advance.