Can someone help me with this economics problem?

Question

Usually i can do these types of problems, but I seem to be missing a bit of information (price of taxes)...but maybe i just don't know how to figure these problems out. (My teacher is a real crack job, he's horrible at teaching, I've pretty much had to teach everything to myself) So if anyone could help me that'd be great. here's the problem:

If autonomous consumption is $2 trillion, investment spending plus government purchases plus net exports is also $2trillion, and the MPC is .75, compute equilibirum income.

Answer 1

AE=C+I+G+NX

C=Ac+MPC*Y

Ac=2 tril

I+G+NX=2 tril

MPC=0.75

AE=2+MPC*Y + 2 = 4+0.75Y

Equilibrium is there Y=AE, so

Y=4+0.75Y

0.25Y=4

Y=4/0.25=16

Answer: Equilibrium income Y=$16 trillion

P.S. Taxes aren't given in your task, originally equation of consumption says:

C=Ac+MPC*Yd

there:

Yd - disposable income

Yd=Y-T

Y-income

T-taxes

Ac-autonomous consumption

But since taxes aren't given we assume it T=0 so Y=Yd, (which will actually lead to huge government deficits thus accumulating debt).

Answer 2

see, there is no reason u cant  do without taxes, this is perfectly fine, see autonomous consuption is given so mpc  is not req. i+g+nx is given, jost assume effect of taxes is included here too it's! but just find output and demand and then the eqn,