3. Because of automatic stabilizers, various components of the government’s budget depend on the level of output, Y. The following are the main components of that budget for India. (All figures are in trillions of Indian rupees, or .)

Tax revenues 10 + 0.15Y Transfers 20 - 0.01Y Government purchases 24 Interest payments 10 Full-employment output is 220 trillion. Find the fullemployment budget deficit and the actual budget deficit for

a. Y = 240.

b. Y = 220.

c. Y = 200.

In general, how does the relationship between the actual deficit and the full-employment deficit depend on the state of the economy?