Question: Consider a simple closed economy model where Y = C I G, consumption is given by the function C = 100 0.75 (Y-T), investment is

Consider a simple closed economy model where Y = C I G, consumption is given by the function C = 100 0.75 (Y-T), investment is I = 100, government purchases are G = 40, and taxes are T = 60. Which of the following is true? Group of answer choices As percentage of equilibrium GDP, the government's budget surplus is 2.6% Disposable income is 780 As percentage of equilibrium GDP, the government's budget deficit is 2.6% Disposable income is 740

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