Consider an economy with the following situation: C = XXXXXXXXXXYd I=100;T= 100 G =150 a. To eliminate the gap, the government decides to change its expenditure G. By how much should G change? Show...

Consider an economy with the following situation: C = 50 +0.8 Yd  I=100;T= 100 G =150

 a. To eliminate the gap, the government decides to change its expenditure G. By how much should G change? Show that income AE or Ye is now 900 after the change in G.

b. If the government decides to adopt balanced budget spending, by how much G and T will change to reach full employment output or income?