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GIVEN:Ca = 5,000 mps = 0.1I = 6,000 G = 4,000 Ta = 1,000 mpt =0.2TR = 1,500 1.Derive the equilibrium income for an economy

GIVEN:Ca = 5,000 mps = 0.1I = 6,000 G = 4,000

Ta = 1,000 mpt =0.2TR = 1,500

1.Derive the equilibrium income for an economy consisting of HH, BF & G does not impose taxes and prove that Y = C + I + G&S = I + G using any approach of your choice.

2.Derive the equilibrium income for an economy consisting of HH, BF & G imposes fixed taxes and prove that Y = C + I + G&S + T = I + G using any approach of your choice.

3.Derive the equilibrium income for an economy consisting of HH, BF & G imposes fixed & behavioral taxes and prove that Y = C + I + G&S + T = I + G using any approach of your choice.

4.Derive the equilibrium income for an economy consisting of HH, BF & G imposes fixed & behavioral taxes but grants transfer payments and prove that Y = C + I + G&S + T = I + G + TR using any approach of your choice.

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