Alright. So let's go through this example. We want to use the following information to solve for macroeconomic equilibrium. And remember, the macroeconomic equilibrium is where GDP \( y \) is equal to \( c + g + nx \). Okay? \( y = c + g + nx \). So we want to add all of those together. So let's go ahead and start here. We want \( y \) to equal \( c + g + nx \). So let's start with \( c \). Notice they gave us \( c \), \( I \), \( g \), and then they didn't give us \( nx \). They gave us exports and imports. This is the terminology they might use for that. But let's start here with consumption. So let's start with consumption as \( c \), which is \( 2000 + 0.65y \). So that is our consumption function right there. \( 2000 + 0.65y \). So I'm going to go like this for \( C \) and then we're going to add to it plus investment of 32,100, and this is \( I \) right here. We're gonna add to it government purchases of 28,100 which is \( g \). And then net exports, they didn't tell us directly. They gave us an amount of exports and amount of imports. So we have to remember that net exports is equal to exports. So exports would be \( x - m \), right? Exports minus imports is our net exports. Okay? So, in this case, they tell us that our exports were 500 and our imports were 1,500. So that means we were importing more than we were exporting, right? There were more imports than exports, so we're gonna have a negative number for our net exports and that's generally the case that that kind of happens a lot in these problems especially because currently the US is in a trade deficit where we import more than we export. So we generally are gonna see a negative number for net exports. So there we go. We've got \( C + I + g + nx \), right? So notice they gave us the \( c \) as an equation and net export as an equation. So let's go ahead and simplify this first. Let's add up all of our constants together. So we had 2,000, let's circle them all, 2,000 plus 32,100 plus 28,100 plus 500 minus 1,500. So let's do that math real quick. 2,000 + 32,100 plus 28,100 plus 500 minus 1,500, that comes out to 61300. So this is generally how you're gonna want to do these problems. Add up all of your constants together, and then you're going to have your 0.65y piece right here, plus \( 0.65y \). Okay? So notice, we've simplified this quite a bit, right? Now, we've got just one constant and our marginal propensity to consume times \( Y \). So what we want to do now is we want to solve for \( Y \). We want to find that equilibrium amount of GDP. So what we want to do is we're going to subtract \( 0.65y \) from both sides to get all the \( y \)'s on one side. And we're gonna be left with \( y - 0.65y \). Do you guys remember how to do that? Well, this is just like one \( y \), right? So one \( y - 0.65y \) is equal to \( 0.35y \). I know a lot of you still struggle with these algebra things, but this is about as tough as it's gonna get here. That's the toughest thing you're gonna have to do with these algebraic equations. So nothing too crazy. So here we go, \( 0.35y = 61300 \). We divide both sides by 0.35 and that'll get us to have \( y \) by itself. So finally, we've got \( y \) equals. So our final equation here is \( 61300 / 0.35 \) and we get 175,143. \( 175,143 \) is our equilibrium GDP, and that's where aggregate expenditures equals GDP, which is \( y \). Right? \( A = GDP \) when \( y = 175,143 \). Simple as that. Alright? So that's all you gotta do is you just gotta add up all your consumption, investment, government, and net exports together and solve for \( y \), cool? Alright, let's pause here and you guys try the next one in the practice problem. I've thrown some tricks at you, so if you get hung up, go ahead and watch the video.