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4. The household consumption function is given by C(Y) -40 4 8(Y . T). (a) (5 points) If the government chooses to lower taxes by
4. The household consumption function is given by C(Y) -40 4 8(Y . T). (a) (5 points) If the government chooses to lower taxes by $100, by how much does equilibrium GDP change? #to of w(b) (5 points) If the government instead chooses to increase its own spending by A Norleash $100, by how much does equilibrium GDP change? IT , P are (c) (5 points) If the government chooses instead to increase spending by $400 at the same time they increase taxes by $400, by how much does equilibrium GDP change
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