Equation: I+G/(y-cw)=N* and Y*=yN* c= 0.80 y = 60 w = 10 I = $200 million G= $216 million Labor Force = 10 million hours a) What is the equilibrium level of employment? N*= _____________________ b) What is the equilibrium level of output? Y*= ___________________________ c) By how much would unemployment increase if deficit spending was reduced by 52 million dollars? _________________________