If the government expenditure is 20 and the net tax rate is t = 0.2:

a)Compute the following table:

Y

NT = tY

G

BB = NT - G

50

0

0

0

100

0

0

0

150

0

0

0

200

0

0

0

250

0

0

0

300

0

0

0

350

0

0

0

b)On the following graph plot government expenditure and the net tax functions:

Net tax revenue

c)Given Yp = 200 on the following graph plot the BB and SBB curve, as well as Yp:

Actual Balance

d)Complete the following statement:

Given the values of government expenditure and tax rate, if Y rises above Yp. BB will

(select one)

and SBB will

(select one)

.