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Homework answers / question archive / You are given the following information about Zambia's economy:* Each year consumers spend k800 million regardless of the level of their disposable income

You are given the following information about Zambia's economy:* Each year consumers spend k800 million regardless of the level of their disposable income

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You are given the following information about Zambia's economy:* Each year consumers spend k800 million regardless of the level of their disposable income. In addition to this k800 million, they always spend 75% of their yearly disposable income.

* Investment is fixed at k250 million.

* Government expenditures are k120 million.

* Net taxes equal k100 million.

* Exports are k170 million.

* Imports are always equal to 15% of the level of disposable income.

(i)   How much would Zambia's equilibrium level of output be?                

How much would net exports be when this economy is at equilibrium output?   

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