Suppose that we are in an economy with international trade, the government, domestic consumption, and investment. The government retains a tax rate of 10%. Suppose that we observe this economy at two levels of national income (Y) ceteris paribus: (i) Y =1,000 and (ii) Y=1,800. The amounts for each of these desired expenditure categories at each of these levels of Y are given by: At Y=1,000 Consumption =1,000 Government Spending =550 Investment =150 Imports =100 Exports =150 At Y=1,800 Consumption =1,560 Government Spending =550 Investment =270 Imports =180 Exports =150