4. If C = 0.8Y, = 260, = 200, = 150, T = 0.2Y, = 320 and M = 0.1Y, the equilibrium level of income is

(a) 900;

(b) 1,957;

(c) 414;

(d) 1,425;

(e) 1,800.

5. In question 4 above, how much do transfer payments have to be increased by to get the actual output equal to the full employment output level of 2,000?

(a) 25;

(b) 43;

(c) 78;

(d) 50;

(e) 105.

Need typed calculation only and explanation.