Consider the following model of aggregate expenditure in a closed economy. C = \bar{C} + c(Y-\bar{T})\\I = i Y \\G = \bar{G} If the parameters of the model are as follows \bar{C} = 60, c = 0.65, \bar{T} = 70, \bar{G} = 90, i = 0.25, m = 0.1. What is the change in GDP if government spending increases to 120 and taxes are raised to match the new spending levels? Question 20Answer a. GDP rises by 33 b. GDP rises by 25% c. GDP falls by 33% d. GDP does not change e. GDP falls by 25