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1. Consider the following model of a closed economy in which household income taxes are proportional to income: Ya = C+1+G Y = ya .

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1. Consider the following model of a closed economy in which household income taxes are proportional to income: Ya = C+1+G Y = ya . C = 400 + 0.60(Y -T) . 1 = 1200 G = 1000 T = 0.20Y a. What is "autonomous expenditure" for this economy? Hint: by definition, it will not depend on the value of real aggregate income (Y)

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