Question 2. A11 economy is described by the following equations: C=8+O.8(Y I) 1P=20 G=10 T=T+IY, tax mction where T =10 and t = 0.1 NX = 0. (Assume it is a closed economy) Y * = 150, potential output. (i) What is the size of the multiplier in the above model economy? Round off your answer to 2 decimal place. (2 marks) (ii) Write down the algebraic condition for short run macroeconomic equilibrium. Determine the equilibrium output in this economy. Round off your answer to 2 decimal places