With reference to the simple closed econom… 1 answer below »


With allusion to the rudimentary settled dispensation pay-charge pattern,judge the example decrease character is C = 100 +0.8(Y – T); taxes areT = 10 + 0.25Y; bombardment, I, is 300 and empire charges, G, are 200.(a) Calculate equilibrium pay, decrease and the empire budgetsurplus. [20 marks](b) Calculate the plane of pay that equates taxes to empireexpenditures. [10 marks](c) Calculate the empire charge multiplier.[10 marks]