HW2 PLAESE SEND THE SOLUTION Question: Assume the economy has the following Consumption function: C = 100+ 0.75Yd Investment: 1 = 100 Government spending: G = 100 Net taxes: T = -25 + 0.2Y Find: b) Find equilibrium level of income c) Find the effect of an increase in tax by $100 on equilibrium income. d) If Government spending increased from 100 to 200. Find the new equilibrium income. e) If investment change by $ 200, what is the new equilibrium income. g) Graph the equilibrium in in b, c, d, e