5.2 Use the information below to answer the questions that follow:

C = 1200 + 0.8Y

t = 0.2

l = 600

Full employment = 12 000

Note: All aggregate values are expressed in millions of rands. Answers must be rounded off to two decimals

5.2.1. Calculate the equilibrium level of income

5.2.2 By how much should government spending increase to reach full employment?

5.2.3 Using a Phillips curve, explain the relationship between unemployment and the inflation rate as a result of demand-pull inflation. Clearly indicate and explain how demand-pull inflation is illustrated on the Phillips curve