5. Now assume that a recession (triggered by a reduction of Aggregate Demand) causes each of the five incomes to fall by 20%. In other words, income is 80% of what they used to be. Given the lower income, a) what would be the total tax revenue paid by each of the five citizens? b) what is the total tax revenue for the small nation? (18 points) 6. What is the Nation's Income in year 2? (6 points) 7. In year 2, what percent of the Nation's Income does the Total Tax Revenue represent? (6 points) 8. Suppose that the Government Budget remained the same in year 2. Is the economy experiencing a balanced budget, a budget surplus, or a budget deficit, in year 2? Accompany your response with the corresponding dollar amount. (6 points) Example 1; if person X earns $70,000/ year, then ($50,000 20%)+($20,00030%)=$10,000+$6,000=$16,000 Example 2; if person X earns $10,000/ year, then ($10,000 20%)+($030%)=$2,000+$0=$2,000