What is the governments budget deficit or surplus

Question

Problem

Assume the following for the economy of a country:

a. Consumption function: C = 85 + 0.5Y_d

b. Investment function: I = 85

c. Government spending: G = 60

d. Net taxes: T = - 40 + 0.25Y

e. Disposable income: Y_d =  Y - T

f. Equilibrium: Y = C + I + G

Solve for equilibrium income. (Hint: Be very careful in doing the calculations. They are not difficult, but it is easy to make careless mistakes that produce wrong results.) How much does the government collect in net taxes when the economy is in equilibrium? What is the government's budget deficit or surplus?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.