Question 1. Consider a closed economy to which the Keynesian-cross analysis applies. Consumption is given by the equation C = 200 + 2f3(l' T). Planned investment is 300, as are government spending and taxes. (18 points) a. If Y is 1,500, what is planned spending? Should equilibrium Ybe higher or lower than 1.500? (4 points) b. What is equilibrium 1"? (Hint: Substitute the values of equations for planned consumption. investment, and government spending into the equation Y= C + I + G and then solve for K) (4 points) c. What are equilibrium consumption, private saving, public saving. and national saving? (5 points) d. How much does equilibrium income decrease when G is reduced to 200? What is the multiplier for government spending? (5 points)