Give me correct answer with full explanation and calculation and carefully drawNote:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. Answer the questions below for the economy of Motak using the graph below.The Economy of MotakGovernment spending / net taxes800700600500400300200100200 400 600 800 1000 1200 1400 1600Real GDPNTRG1Tools/G₂a. If GDP is $1,000 and government spending is G1, the size of Motak's budget deficit is $billion.b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing areaabove.c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $billion.d. Motak's deficit at this new level of equilibrium GDP is $billion.

Government spending is total finance used by the government to fund various activities. The…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give me correct answer with full explanation and calculation and carefully draw

Note:-

Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.

Answer completely and accurate answer.

Rest assured, you will receive an upvote if the answer is accurate.

Answer the questions below for the economy of Motak using the graph below.
The Economy of Motak
Government spending / net taxes
800
700
600
500
400
300
200
100
200 400 600 800 1000 1200 1400 1600
Real GDP
NTR
G1
Tools
/
G₂
a. If GDP is $1,000 and government spending is G1, the size of Motak's budget deficit is $
billion.
b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area
above.
c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $
billion.
d. Motak's deficit at this new level of equilibrium GDP is $
billion.

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