Suppose the economy's full employment equilibrium (Yf) is $2 trillion per year and that the spending desires of market participants are as follows:

C = $400 billion + 0.5YD

I = $300 billion

G = $400 billion

1. Given Yfand after solving for Ye, what problem is this economy confronted with?
2. How could the government eliminate the problem with:
3. a change in tax?
4. a change in government spending?