QUESTION 2: (5 Marks) Assume you have the following data on consumption and disposable income (millions of USD): Disposable Income (DI = GDP) Consumption 1,20 950 1,320 1,040 1,452 1, 139 1,600 1,250 your work. a) Calculate the government Taxes (T), as well as the MPC, MPS, and the multiplier (2 Marks). Show mec = M PS b) Obtain the equations for consumption and (private) savings, calculation the respective intercepts and slopes. Show your work. (2 marks) c) If the government decides to cut taxes while maintaining a balance budget, calculate the effect on equilibrium real GDP (Y). Show your work. (1 mark)