content area Part 1 Balanced budget versus automatic stabilizers It is often argued that a balanced budget amendment would actually be destabilizing. Consider the following behavioral equations: C = c0 + c1YD T = t0 + t1Y YD= YminusT G and I are both constant. Assume that t1 is between 0 and 1. c0 is autonomous consumption, c1 is the propensity to consume, and t0 is the part of taxes not dependent on income. Part 2 Solve for equilibrium output. (Use I instead of Upper I overbar in your equation.) Y = enter your response here. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the _ character.) Part 3 What is the equilibrium equation for taxes? (Use I instead of Upper I overbar in your equation.) T = enter your response here. (Properly format your expression using the tools in the palette.)