Suppose that, instead of a fixed level of taxes, we had an income tax so that T = t1Y
Where t1 was the income tax rate following the procedure of Section 4, derive an expression for equilibrium income Y analogous to equation (14) for this case in which the level of tax collections depends on income. What is the expression equivalent to the autonomous expenditure multiplier [1/(1 - b)] for this case of an income tax?