Question: Please answer quickly Consider an economy where: C =300 + 0.7YD 1 = 860 G = 620 NT = 0.3Y a) Calculate the equilibrium income

Please answer quickly

Consider an economy where: C =300 + 0.7YD 1 = 860 G = 620 NT = 0.3Y a) Calculate the equilibrium income Y*. b) Draw an AE-Y graph for the economy, and ensure you label the intercept and slope of the AE function. On your graph, demonstrate where Yp belongs if there is a recessionary gap. c) How could the government adjust the tax rate to close this gap? Answer in words and show the appropriate change on your graph from (b)

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