Consider the following behavioral equations: C=co + C₁YD T=to+t₁Y YD=Y-T G and I are both constant. Assume that t₁is between 0 and 1. a. Solve for equilibrium output. b. What is the multiplier? Does the economy respond more to changes in autonomous spending when t₁ is 0 or when t₁ is positive? Explain. c. Why is fiscal policy in this case called an automatic stabilizer?

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