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Please solve Consider a closed economy (no trade) where: C = 400+0.8YD lo = 3500 Go = 2100 NT = 0.2Y a. Solve for Y*

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Consider a closed economy (no trade) where: C = 400+0.8YD lo = 3500 Go = 2100 NT = 0.2Y a. Solve for Y* b. Calculate the government's budget balance (BB). Draw a budget balance graph, labelling the intercept and slope of all functions, and demonstrate where equilibrium Y* lands on this graph. c. What change would the government make if they believed there was an inflationary gap? Demonstrate how this change would affect your graph from (b)

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