Showing results for Consider planned aggregate expenditure model in a closed economy with lump-sum taxes: planned investment, I = $2.5 trillion; government spending G = $2 trillion; Taxes are equal to $3 billion; the consumption function, C(Y-T)= $2trillion + 0.75(Y-T). What is the equilibrium level of output?b. At the equilibrium level of GDP: What is total consumption in the economy?c. At the equilibrium level of GDP: What is total savings in the economy?d. What is the government spending multiplier? (Hint: Consider a $1 trillion dollar increase in GDP)