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4. Case B Fill-in the correct values on the table below after the value of taxation. T. decreases from $10,000 to $5,000. [NOTE: Use T - $5,000) a = $68,000 e=0.80 1 = $25,000 G=$15,000 T-$5,000 EDG ESG Z y E IP+G $ $ $490.000 $ $ $495.000 $500,000 $505.000 $510,000 $515.000 $520.000 $525.000 T. Using the appropriate graph of the market for goods and services) to explain what condition exists at the original equilibrium level of income, y. after the value of taxation, T, decreases from $10,000 to $5,000. [NOTE: The original equilibrium level of income. yi, was determined in Case A.) Be careful to label each axis and curve on this diagram! Case A E=C+I+G=A+e.y C=a+e. Z = (a = e.T)+ @y Z=y.T A = (are. 7)+(I +G) K= 1/(1 -e) Ve=KA y = E[ y=ye) i.e., in equilibrium S=y-C FS = T-G EDG = . - y 4. Case B Fill-in the correct values on the table below after the value of taxation. T. decreases from $10,000 to $5,000. [NOTE: Use T - $5,000) a = $68,000 e=0.80 1 = $25,000 G=$15,000 T-$5,000 EDG ESG Z y E IP+G $ $ $490.000 $ $ $495.000 $500,000 $505.000 $510,000 $515.000 $520.000 $525.000 T. Using the appropriate graph of the market for goods and services) to explain what condition exists at the original equilibrium level of income, y. after the value of taxation, T, decreases from $10,000 to $5,000. [NOTE: The original equilibrium level of income. yi, was determined in Case A.) Be careful to label each axis and curve on this diagram! Case A E=C+I+G=A+e.y C=a+e. Z = (a = e.T)+ @y Z=y.T A = (are. 7)+(I +G) K= 1/(1 -e) Ve=KA y = E[ y=ye) i.e., in equilibrium S=y-C FS = T-G EDG = . - y