Consider the following table showing national income and government net tax revenues in billions of dollars. Assume that the level of government purchases is \(\$ 155 \) billion.

a. Compute the government's budget balance for each level of national income and fill in the table.

b. Suppose that net taxes are given by \(T\), where \(T=\) \(t_{0}+t_{1} Y\). Using the data in the table, determine the values of \(t_{0}\) and \(t_{1}\).

c. What is the interpretation of \(t_{0}\) ?

d. What is the interpretation of \(t_{1}\) ?

e. Suppose the government decides to increase the level of its purchases of goods and services by \(\$ 15 \) billion. What happens to the budget balance for any level of national income?

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Actual National Income (Y) Net Tax Revenues (T) Budget Balance (T-G) 100 45 200 70 300 95 400 120 500 145 600 170 700 195 800 220