Consider the following consumption function: C (Y)=0.8(Y-T) where Y represents income and T represents net taxes. Suppose that investment, I, is 100; government spending, G, is 200; and, net taxes, T, are 100. 1)The equilibrium level of output is:   a. 1200   b. 900   c. 1100   d. 1000 Tha values for the government expenditure and tax multipliers are, respectively:   a. 5 and -4   b. -2 and 2   c. 2 and 2   d. 2 and 4

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