1. a) Consider a closed economy with two classes of consumers: industrial workers and agricultural workers. The former pay tax while the latter don't. The former live in cities and spend more. Therefore, their marginal propensity to consume is greater than the same of the latter. Industry generates proportion of the GDP where 0 < h < 1. Calculate the equilibrium GDP of this Keynesian demand driven economy with autonomous investment and government expenditure. Show that the Balanced Budget Multiplier is less than 1. Explain why?