Question 3 The country of ZN is closed to international trade. Its economy can be described by the following equations. C = 200 +0.75 (Y - T) P = 80 G = 155 T = 100 + 0.25Y Y* = 800 (a) Calculate equilibrium GDP. (Y = 822.857) (b) What is the size of the budget balance at equilibrium GDP? ( BB = 150.71) (c) What is the size (in percent) of the output gap in ZN. (2.86 per- cent) (d) What is the magnitude of the government expenditure multi- plier? (2.286) (e) What is the magnitude of the autonomous tax multiplier? (1.714) (f) What size change in autonomous taxes would be required to eliminate the output gap in ZN? (Change in autonomous taxes = 13.33)