1. Based on the following information, C = 40 + 0.7Yd, T = TB - R, I = 150, G = 250, Tg = 50, R = 35 calculate the equilibrium level of income (Ye). b . calculate the value of KG, KTg and KR, where k is the multiplier. a. calculate the values of C, S and T at Ye level. b. calculate the new equilibrium level of income if I increases by 10 percent. C. if G increases to 350 units and it is fully funded by the rise in T, what is the impact on Ye? d. if To increases to 65 units and R increases to 40 units, what is the effect on the level of Ye? 2. Given the following information. C = 600 + 0.8Yd , Yd = Y -T, Tg = 100, 1= 200, R = 50, G = 350, X = 250 and M = 200 + 0.1Y. Calculate the equilibrium level of income (Ye). b . Show the equilibrium level of income by using diagrams of both aggregate expenditure-income (AE-Y) approach and injection-leakage approach, C. How much investment should be increased if the government wants to increase the national income by 2000? d. How much tax has to be reduced so that the national income will increase by 2000? e . Based on the answer in Question 2(a), if the government undertakes expansionary fiscal policy by increasing government expenditure by 400, calculate the new equilibrium level of income. f. After being at the equilibrium level of income in Question 2(e) above, if the government reduces the tax by 400, what is the new equilibrium level of income? g. Starting with the original information above, if the government runs a balanced budget i.e. increases the government expenditure and tax by the same amount (AG = AT = 400 which A means changes), calculate the new equilibrium level of income. Draw a diagram to show this situation