1. Let the isoquant function to be Q = 3L^0.5K^0.5. Please mathematically show if this function has (a) an increasing, (b) constant, or (c) decreasing return to scale. Please note that showing 'a+b' is not enough in this context. Then, please explain what these 'returns' mean.

1. Let the national income model be Y = C₀+ c (Y - 3tY) + I + G + X - M, where C₀, I, G, X, and M are given. The government considers increasing G by EUR 1 million. Assuming c = 0.3 and t = 0.15, what would be the expected change in the national output?