Given: c: 0.75 y = $40 W : $32 I : $3,600rn G: $3,600m Labor force = 800m hours a)N*=? b)Y*=? Suppose government decides to not engage in decit spending (13: 0) c) What's the new equilibrium level of employment? d) What's the new equilibrium level of output? Question 4: (25pts) Given: c : 0.75 y = $40 w: $20 I : $1 ,000m G= $500 Labor force = 100m hours a)N*=? b)Y*=? c) Suppose that on average a worker works 2,000 hours per year (500 workers = 1 million hours). By how much would government spending have to go up to increase employment by 10,000 workers