Please write answers to all parts of the question (a), (b), (c) in the space below. (10 marks) (a) Explain the difference between a Budget Deficit, Budget Surplus and Balanced Budget? (3 mark) (b) If a Budget is in DEFICIT of $10billion and then the government increase Taxes by $3 bill and increase Government Spending by $5 billion what happens to the budget? Does it become a bigger or smaller deficit or surplus. Explain. (2) c) If the government wishes to increase INCOME in the economy by $80 billion and the MPC is 0.5. Explain by how much government spending should change by (assuming taxation stays the same). (1) (d) If the MPC= 0.6 and government spending rises by $15 billion , how much will equilibrium income in the economy increase by? (1) (e) If Savings = $30, Export Spending = $15, Investment = $20, Taxation = $45, Government Spending = $55, Import Spending = $25 (i) Explain whether the economy is contracting or expanding by by calculating leakages and injections (2) (ii) Explain what sort of Fiscal policy would be necessary in this economy and why. (1)