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E. Given the values below, solve for Y* (equilibrium output). a = 300 MPC = .6...

E. Given the values below, solve for Y* (equilibrium output).

a = 300

MPC = .6

I = 350

G = 500 (an increase of 100 from 1B above)

T = 350 (an increase of 100 from 1B above)

F. It is more realistic to assume a percentage tax rate (t) , rather than a flat tax. Given the values below, solve for Y*.

a = 300

MPC = .8

I = 200

G = 300

t = 25%

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