Q4 Consider the Keynesian model of a closed economy, with output 1', consumption function C = a + M}? T), and other autonomous expenditure i\" and G. a. Verify that when the economy' 5 goods market is in equilibrium, the following equation holds: 5 = F + (G T), where Sis saving. b. Starting from an equilibrium, suppose households decide to increase saving by $100. This can be represented in the Keynesian model as a fall in autonomous consumption, from a to a $100. Show algebraically that when the economy reaches its new equilibrium in the Keynesian model, saving ultimately does not increase. :2. Submission not required, for discussion in class: Discuss the answer that the Keynesian and Classical models provide for this question: "are attempts by households to increase saving good for the economy?\" d. Submission not required, for discussion in class: Why might one expect that real world expenditure multipliers are not as large as the Keynesian model suggest, but not as small as the Classical model suggests