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Hi there, I need help with the following practice question. The following parameters are for the national economy of Bangladesh for the year 2015 (in

Hi there, I need help with the following practice question.

"The following parameters are for the national economy of Bangladesh for the year 2015 (in billion dollars). Assume no transfer payment."

The info I am given:

C = 100+0.75 YDG = T =400, I = 200 and Xn= 300-0.15Y

What I'm stuck on:

-Calculate the value of equilibrium income.

-At equilibrium what is the amount of the budget deficit/surplus?

-Suppose government takes a fiscal policy of increasing both its spending (G) and autonomous taxes (T) by $80 billion. Calculate the new equilibrium income.

-Is this fiscal policy neutral?

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