Answer the questions below for the economy of Motak using the graph below.  a. If GDP is $800 and government spending is G1, the size of Motak's budget deficit is $ billion. b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above. c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $ billion. d. Motak's deficit at this new level of equilibrium GDP is $ billion.

The following data are for the economy of Moksha. C = 40 + 0.75Y G = 180I = 70 XN = 50 − 0.25Y a. Calculate equilibrium GDP. Equilibrium GDP is $ . b. Calculate the multiplier.Round your answer to 2 decimal places. The multiplier is . c. If the tax function is T = 20 + 0.2Y, the size of the budget (Click to select) is $ . Round your answer to 1 decimal place. d. Now, change government spending, by the size of the surplus, or deficit, in an attempt to balance the budget. What will be the new equilibrium income? Round your answer to 1 decimal place. New equilibrium GDP is $ . e. At the new equilibrium there is a budget (Click to select) os $ . Round your answer to 2 decimal places.Solve this.

11) Suppose President Obama is successful in passing a $5 billion tax increase. Assume that taxes are fixed, the economy is closed, and the marginal propensity to consume is 0.75. What happens to equilibrium GDP?A) There is a $20 billion increase in equilibrium GDP.B) There is a $20 billion decrease in equilibrium GDP.C) There is a $15 billion increase in equilibrium GDP.D) There is a $15 billion decrease in equilibrium GDP.12) What is the government purchases multiplier if the tax rate is 0.1 and the marginal propensity to consume is 0.9? Assume the economy is closed.A) 5.3B) 10C) 11.1D) 10013) In an open economy, the government purchases multiplier will beA) larger as the marginal propensity to import increases.B) smaller as the marginal propensity to import increases.C) larger as the marginal propensity to tax increases.D) smaller as the marginal propensity to consume increases.14) Calculate the government purchases multiplier if the marginal propensity to consume equals 0.8, the tax rate is 0.1, and the marginal propensity to import equals 0.2.A) 2.1B) 1.9C) 1.7D) 1.415) The government purchases multiplier will be larger if the marginal income tax rate decreases.16) The larger the marginal propensity to import, the larger the government purchases multiplier.17) In a closed economy with fixed or autonomous (non-income dependent) taxes, the balanced budget government purchases multiplier is negative.18) Assuming a fixed amount of taxes and a closed economy, calculate the value of the government purchases multiplier, the tax multiplier, and the balanced budget multiplier if the marginal propensity to consume equals 0.5.19) Calculate the value of the government purchases multiplier if the marginal propensity to consume equals 0.9, the tax rate equals 0.25, and the marginal propensity to import equals 0.15.20) Assuming a fixed amount of taxes and a closed economy, calculate the value of the government purchases multiplier, the tax multiplier, and the balanced budget multiplier if the marginal propensity to consume equals 0.75.21) Calculate the value of the government purchases multiplier if the marginal propensity to consume equals 0.8, the tax rate equals 0.2, and the marginal propensity to import equals 0.05.

Continue with the same equations. a. What is the value ofα G​ which corresponds to the simple multiplier (with taxes) of Chapter 9? b. By how much does an increase in government spending ofΔ Gˉ increase the level of income in this model, which includes the money market? c. By how much does a change in government spending ofΔ Gˉ affect the equilibrium interest rate? d. Explain the difference between your answers to parts (a) and (b).

Figure 22-3In each case, the budget constraint moves from BC1 to BC2.​Graph (a) Graph (b) Graph (c) Graph (d) Refer to Figure 22-3. Which of the graphs in the figure could reflect an increase in income?Group of answer choicesGraph (d)Graph (b)Graph (a)None of the graphs reflects an increase in  income.

Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400Given what you know from the previous question, i.e. the government is changing spending to reach balanced budget. Find the new income of equilibrium.