On the planet Omicron Persei 8, government spending is $1000, net taxes are $1200, and planned investment is $1400. Consumers spend according to the equation C = 100 + 0.8Yd, where Yd represents disposable income. Given this information, fill out the table below to determine which of the output levels represents a macroeconomic equilibrium then answer the questions that follow.

a. Which level of output is a macroeconomic equilibrium?
b. Is the government budget balanced, in deficit, or in surplus, and by how much?
c. Find the marginal propensity to consume, and the marginal propensity to save.
c. Find the government spending multiplier. If the government wanted to increase the equilibrium level of income by $1,000, by how much would it have to increase government purchases?
e. Find the tax multiplier. If net taxes were lowered by $100, what affect would it have on the equilibrium level of income? Give a specific numericalanswer.

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Net Disposable Output Taxes Income Consumption Planned Govemment Planned Unplanned Investment Purchases Aggregate Inventory Expenditure Change Income AE 6200 1200 6700 1200 7200 1200 7700 1200 8200 1200 5000 5500 6000 6500 7000 4100 4500 4900 5300 5700 1400 1400 1400 1400 1400 1000 1000 1000 1000 1000 6500 6900 7300 7700 8100 300 -200 -100 100