An economy is described by the following equations: C = 2,500 + .9(Y - T). I = 2, 200. G = 2,300, NX = 100, 7 - 2, 100, TR = 0, u' = 5%, a =2% Answer the following questions on short-run output. Clearly explain your answers, place a box around your answers for each part of the question, and keep your answers inside the boxes provided. Where you see a (#) I want a number!! (a) What is the government's current budget situation - name and (#) (b) Trade Situation: name and number (c) What is the multiplier in this coonomy (#)? (d) If the economy is currently operating at potential, solve for the current level of equilibrium output? (e) Suppose that our economy is operating at potential output as well as the target rate of inflation. In the space below, sketch out the Keynesian cross diagram including your answer to part d. (f) In the space below sketch out the AD-IA diagram for part d. Show potential GDP and the target rate of inflation on your graph.Page 1 of 2 1)Assume the simple spending multiplier equals 10. (What would the MPC be if this was the case?_ Determine the size and direction of any changes of the aggregate expenditure line, real GDP demanded, and the aggregate demand curve for each of the following changes in autonomous spending: (a) Autonomous spending rises by $8 billion (b) Autonomous spending falls by $5 billion (c) Autonomous spending rises by $20 billion 2)What is the relationship between LRAS and the natural rate of unemployment? (a) If the economy currently has a frictional unemployment rate of 1 1/2%, structural unemployment of 1 1/2%, seasonal unemployment of 12%, and cyclical unemployment of 2%, what is the natural rate of unemployment? Where is the economy operating relative to LRAS? (b) What happens to the natural rate of unemployment and LRAS if cyclical unemployment rises to 3% and everything else stays the same as in part a? (c) What happens to the natural rate of unemployment and LRAS if structural unemployment falls to 1% and the other numbers are the same is in part a?Proposal 3 The third proposal we'll consider is a progressive tax, where lower income groups are taxed at a lower percent rate, and higher income groups are taxed at a higher percent rate. The percentage increases as the income increases. For simplicity, we're going to assume that a household is taxed at the same rate on all their income; this is different from the current United States system. 1) Set progressive tax rates for each income group to bring in enough money. You need to create a progressive tax... Everyone gets taxed some rate other than 0%, the rate progressively increases. I would like your group to try and come up with a FAIR rate. (yes... groups have tried to only tax the rich and not the poor. This is not a progressive rate. That is a modified flat-rate.) 2) Explain why you think this rate is fair. Your explanation should consider real-life in the United States. There is no one right answer here. I ask that you seriously ponder this question to come up with what your group considers fair. (Food for thought, 10 years from now you will probably be making a higher income.) Your explanation should be at least 250 words. Group Income per Tax rate Income tax Total tax Income after household (%) per collected for all taxes per household households household A $12,000 $29,000 C $50,000 D $79,000 $129,000 F $295,000Angela decides to buy a new car. She finds a pre-owned Corvette for $27,900.00. She made a down payment of $8,000,00 from the trade-in of her old car and finances the rest over 5 years (hint: how many months is that?) with monthly payments of $389.50. find the APR. APR = Annual Percentage Rate (Flammon charge per $800 of amount financed) 53.13 4.60 4.94 5.21 5.50 769 810 69 9.64 10:19 1075 14.13 14 83 15 54 10.34 10.16 11:98 1251 1364 1448. 13.32 16.16. 17.01 1786 18,71 1957 1783 1494 1606 12.18. 1831 1945 7059 71 74 25.23 1749 18.81 3021 21.65 21.10 2435 M.01 2740 31.96 QUESTION S A couple year's ago, Angela took out a 48-month fixed installment loan with monthly payments of $83.81 and an APR of 7.0% The amount she borrowed was 53500. Instead of making her 18th payment, she is paying the remaining balance on the loan. Use the formula below to determine the amount of interest Angela will be saving by paying off the learn early. This is called the unturned interest (u). (a) u = $ (b) What is the total amount due to pay off the loan? $7 100 + h k's number of payments remaining. raduding the current one A = monthly payment he finance charge per $100 for a loan with the same APR and monthly payments (Hint: is the amount of the loan, $3600, in the formula?) HIM Lig 16 24 ST MAT1:50 7