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I need help please, with number 5,6 and 7 You are given the following information about the economy of Snowland: Autonomous consumption expenditure is $2

I need help please, with number 5,6 and 7

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You are given the following information about the economy of Snowland: Autonomous consumption expenditure is $2 billion, and the marginal propensity to consume is 0.78. Investment is $5 billion, government expenditures on goods and services are $5 billion, and net taxes are a constant $3 billion. (Assume this is a closed economy with no exports and imports) 1. What is the consumption function? [Hint: C= a + b YD] 2. Write the equation that describes the AE curve? [Hint: AE=autonomous expenditures + (slope) Y] ns 3. Calculate the equilibrium Expenditure [Hint: use Y=AE] 4. Calculate the government expenditures and the tax multipliers?5. A recession has hit the economy and government has decided to rise its spending on . goods and services by $5 billion. How much GDP will change? 6. If government increases it tax revenues by $5 billion, how much GDP will change? 7. If government follows both policies in (5) and (6) above (increase in G and T by $5 billion), what would be the net impact on GDP

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