Assume the following behavioral equations for a

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8.Assume the following behavioral equations for a macroeconomy:C = 200 + .8Yd, I = 200, T = 200 and G = 500
(a)Calculate the equilibrium level of output.
(b) Given the information, calculate the level of consumption that occurs at the equilibrium level of income.
(c)Suppose Taxes increase by 100. Calculate the new equilibrium level of income.
9.Given: C= 400 + .6Yd. Taxes = 600Equilibrium Output = 4,000At equilibrium, what is the sum of investment and government purchases in this economy?
10. Determine the impact of an increase in government spending of $10 billion when theMPCis .9. Determine the impact of a decrease in government spending of $5 billion when the MPSis .5.
11.What is discretionary fiscal policy? Please explain what is an Automatic Stabilizer. Explain how some government tax revenue and spending can depend on the state of the economy.

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