Question: Please answer all the question. Thank you. 3. Suppose that initially equilibrium income was 200 units and that this was also the full employment level

Please answer all the question. Thank you.

3. Suppose that initially equilibrium income was 200 units and that this was also the full employment level of income. Assume that the consumption function is C=25+0.30YD and that. from the initial equilibrium level of income. we have new investment decline of 8 units? What will be the new equilibrium level of income? What increase in government spending would be required to restore income to the initial level of 200? Alternatively. what reduction in tax collection would be sufcient to restore an income level of 200

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