Government spending multiplier 1/MPS. Tax multiplier -(MPC/MPS). coco 4. Assume that the consumption function for the above economy is C = 1000 + .75Yd fill in the empty cells. (All Figures are in Billions of Dollars) (3 Points) Output Taxes Disposable Consumption Saving Investment Gov Aggregate Income Spending erment Expenditure 5000 1000 750 750 7000 1000 750 750 9000 1000 750 750 5. Given the model for the Mary Island economy calculate the equilibrium level of income. (2 Points) Show your work. C = 100 + .7Yd G = 700 T= 500 I =200 . Calculate the government spending multiplier and the tax multiplier if the MPC is 0.6. Show your work. 7. Determine the net impact upon the nation's economy that results from equal increases in government spending and taxes of $10 billion when the MPC is .8. Show your work. words X Focus E + 119 MAR 18 tv N MacBook