Your island economy has been thriving for many years now, and has grown large, with many people, services, goods, and trade available. In your island economy, you currently have no government. You...

Your island economy has been thriving for many years now, and has grown large, with many people, services, goods, and trade available. In your island economy, you currently have no government. You know the following information: • People seem to spend about 80% of their income. • People import (from a neighbouring island!) about 15% of their goods and services. • Business Expenditure is currently at $2,000. • Exports/year are worth $1,000 3. There is a virus in a neighbouring economy, and as a result, your exports and imports both drop to zero, respectively. Graph the impact of this on both your equilibrium GDP and budget balance. What is our GDP now, and what is our budget balance?