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2. Consider the following parameters that describe an economy: C
= 50 + 0.8YD I = 70 G = 200 TR = 100 t = 0.2 a. Calculate the
equilibrium level of income and the multiplier in this model. b.
Calculate the budget surplus in this model. c. Suppose that the tax
rate, t, increases to 0.25. What is the new equilibrium income? The
new multiplier? d. Calculate the change in the budget surplus.