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In the above example, if exports change to X = 100, find the change in equilibrium income and the net export balance.
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C = 40 + 0.8YD T = 50 I = 60 G = 40 X = 100 M = 50 + 0.05Y Equilibrium level of income $\text{Y}=\frac{\text{A}}{1-\text{c}+\text{m}}$$=\frac{\text{C}-\text{cT}+\text{I}+\text{G}+\text{X}-\text{M}}{1-\text{c}+\text{m}}$
$=\frac{40-0.8\times50+60+40+100-50}{1-0.8+0.05}$
$=\frac{40-40+60+40+100-50}{1-0.75}$
$=\frac{150}{0.25}=\frac{150}{25}\times100$
$=600$
Net export balance:NX = X - M - 0.05Y
= 100 - 50 - (0.05 × 600)
= 50 - (30)
= 50 - 30 = 20
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