The main difference between variable taxes and fixed taxes is that unlike variable taxes, fixed taxes $($rise and fall with GDP$/$ do not vary with GDP$)$ the following graph shows the consumption schedule for an economy with a given level of taxes. Suppose the government implements a reduction in a variable tax. Use two green points $($triangle symbol$)$ to connect the two black points $($plus symbols$)$ representing the consumption schedule after the change in taxes. Hint: The new consumption schedule must pass through one point on the left and one point on the right. $($graph$)$ The blue line on the next graph represents the original total expenditure line for this economy before the change in tax structure. Use the new consumption line you just plotted to calculate the new tota expenditure at two levels or real GDP and fill in the following table. GDP level Total Expenditure $($Billions of dollars$)($Billions of dollars$)10[?]90[?]$ Use the green points $($triangle symbols$)$ to draw the new total expenditure line on this graph given the reduction in a variable tax previously discussed and subsequent changes in the consumption schedule shown on the preceding graph. $($graph$)$ Suppose that the government also considered a fixed tax cut and that the resulting consumption schedule would have also passed through one black point $($plus symbols$)$ on the left and one point on the right on the first graph $($though not necessarily the same points as the consumption schedule resulting from the reduction in a variable tax$).$ On the first graph, use two purple points $($diamond symbol$)$ to connect the two black points $($plus symbols$)$ representing the consumption schedule that would result from a reduction in a fixed tax. $($Hint: As before, the consumption schedule must pass theough one point on the left and one point on the right$).$ On the second graph, use the purple points $($diamond symbols$)$ to draw the total expenditure line that would result from a reduction in a fixed tax indicated on the top graph. True or False: The change in equilibrium output is greater when the government implements the fixed tac cut. $[]$ True $[]$ False $6.$ Graphical treatment of taxes and fiscal policy The main difference between variable taxes and fixed taxes is that unlike variable taxes, fixed taxes The following graph shows the consumption schedule for an economy with a given level of taxes. Suppose the government implements a reduction in a variable tax. Use two green points $($triangle symbol$)$ to connect the two black points $($plus symbols$)$ representing the consumption schedule after the change in taxes. Hint: The new consumption schedule must pass through one point on the left and one point on the right. $/$r$/$n The blue line on the next graph represents the original total expenditure line for this economy before the change in tax structure. Use the new consumption line you just plotted to calculate the new total expenditure at two levels of real GDP and fill in the following table. Use the green points $($triangle symbols$)$ to draw the new total expenditure line on this graph given the reduction in a variable tax previously discussed and subsequent changes in the consumption schedule shown on the preceding graph. $/$r$/$n Suppose that the government also considered a fixed tax cut and that the resulting consumption schedule would have also passed through one black point $($plus symbols$)$ on the left and one black point on the right on the first graph $($though not necessanily the same points as the consumption schedule resulting from the reduction in a variable tax$).$ On the first graph, use two purpie points $($diamond symbol$)$ to connect the two black points $($plus symbols$)$ representing the consumption schedule that would result from a reduction in a fixed tax. $($Hint: As before, the consumption schedule must pass through one point on the left and one point on the right.$)$ On the second graph, use the purple points $($diamond symbols$)$ to draw the total expenditure line that would result from a reduction in a fixed tax indicated on the top graph. True or False: The change in equilibrium output is greater when the government implements the fixed tax cut. True False