Question: please explain this question, with calculations Assume the following data for the Australian economy (in billion $) in 2022. Answer the questions that follow. Assume

please explain this question, with calculations

Assume the following data for the Australian economy (in billion $) in 2022. Answer the questions that follow. Assume I, G and NX are independent of the level of income:

C = 160 + 0.60Y

I = 305

G = 460

NX = +55

(iv) If the government decided to change income tax, by how much will the Government need to change taxation and in what direction?

(v) Should the government implement an expansionary or contraction fiscal policy in response? What is the aim of the government's policy stance?

Based on the above data will the government budget for a deficit or surplus in 2022? Explain your answers

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