Following information is given to you:
C=50+0.8Yd
I=70
G=200
TR=100
Tax Rate=0.20
i Find the equilibrium level of income
ii Find the consumption at equilibrium level of income
iii If tax rate rises to 0.25, find new equilibrium level of income
iv Find the Government Expenditure multiplier
v Find tax rate multiplier
vi If the full employment income is 50 times higher than equilibrium level of income , how much must government change its expenditure to reach at full employment level of income.