Based on research conducted by the Department of Economic Analysis, the government and policy advisors of an economy believe that the full employment GDP is $7500 billion, and Pe, the overall expected price level is 118. addition, the researchers estimate that the short run aggregate supply equation is Y = Ypot + 80 (P - Pe), where Ypot is the potential level of output. In 2016, the population was 400 million, and the structure of the economy was described by the following equations for household consumption behavior and taxes received: C = 100+ 0.8DI, and T = 0.25Y where all monetary values are in billions of dollars. Government spending was fixed at $1700 billion, and firm's investment behavior was fixed at $800 billion. Trading is allowed in this economy and in 2016, trading occurred such that the trade account was balanced. That is, net exports (X - IM) was equal to zero.

1.what is the spending multiplier in this economy?

2.what us the tax multiplier in this economy?

3. what is the current price level at equilibrium level of GDP in 2016?

4.what is the level of real GDP per capita in 2016

5.what is the balance of the governments budget in 2016?

6what is the spending multiplier in this economy?

7.what us the tax multiplier in this economy?

Now consider that in in the following year (2017), the government decided to implement a policy aimed at moving the economy to full employment. In its decision to move the economy to full employment, they used government spending as the policy tool. The structure and fixed spending behaviors remain the same as they were in 2016, except for government spending. In addition, changes to the population's birth, mortality, and net migration levels were such that the population remained at 400 million. The policy was implemented, and it was successful in achieving its primary purpose.

8.what is the balance of the governments budget in 2016?

9. what is the current price level at equilibrium level of GDP in 2016?

10. what is the change in government spending(in billions of dollars) that was necessary to moe the economy to full employment tin 2017? (report answer in 2 decimal places)

11.what was the change in the equilibrium level of real GDP (in billions) that resulted from he government's policy in 2017? report answer to 2 decimal places

12 what was the percentage change in the overall price level from the governments policy in 20127?

13 what was the change in real GDP per capita that resulted from the government's policy in 2017?

14.what was the change in the governments budget balance from the governments policy in 2017?