Paragraph Styles 1 5 6 4. Using the above table for Sueppelvania's federal government, a. Calculate the budget balance for each year, Include for each year if it is a budget de surplus, or balanced budget and the magnitude. b. If Sueppelvania started year 1 with $900 billion of debt, what is the amount of debt year 5? 5. Taking account the supply-side effects, what will happen to the following with an increase in th tax rate: a. Employment? b. Potential GDP? 6. What four possible fiscal policy changes do Gokhale and Smetters consider to meet our social se obligation? 7. Explain what happens to transfer payments and tax revenues during: a. A recession. b. An expansion. 8. a. Explain the difference between a cyclical deficit and structural deficit. Make sure you define e your answer.. b. If the structural deficit is $95 billion and the cyclical deficit is $40 billion, what is the total deficit c. Why does the deficit tend to decrease during the expansion phase of the business cycle? 9. Explain the three time lags in discretionary fiscal policy