D,E,F,G ---WOOZPlanned expenditure function question with lump-sum taxDo all parts to the question (show your work)Assume in Fantasticland, MPC = 0.75, and autonomous consumption = $6000.%3DPlanned investment = $2000, and planned government purchases = $5000. All Planned I and G are%3D%3Dautonomous expenditures. Taxes ( T) is = $1000, and net exports = zero.a.Write out the consumption functionb. What is induced consumption in this modelC.Write out the planned expenditure function (show your work)d. Calculate current equilibrium real current GDP (income) (show your work)How much is the expenditure multiplier?е.f.How much is the net tax multiplierg. At the current level of equilibrium, the economy is experiencing a recessionary gap $4000. Howmuch is the full employment GDP?h. How much will fantasticland change lump sum tax to close the recessionary gap?i.Write out the new planned expenditure function to reflect the change in lump sum taxes toclose the recessionary gap of $4000.j. Graph the planned expenditure function. Show current equilibrium point, full employment Y,shift in planned expenditure for a change in lump-sum taxes. Label the autonomous points.

Since we only answer upto 3 subparts, we shall do parts d, e and f only. Please resubmit the…

Planned expenditure function question with lump-sum tax Do all parts to the question (show your work) Assume in Fantasticland, MPC = 0.75, and autonomous consumption = $6000. Planned investment = $2000, and planned government purchases = $5000. All Planned I and G are autonomous expenditures. Taxes (T) is = $1000, and net exports = zero. %3D %3! %3D a. Write out the consumption function b. What is induced consumption in this model C. Write out the planned expenditure function (show your work) d. Calculate current equilibrium real current GDP (income) (show your work) е. How much is the expenditure multiplier? f. How much is the net tax multiplier At the current level of equilibrium, the economy is experiencing a recessionary gap $4000. How much is the full employment GDP? h. How much will fantasticland change lump sum tax to close the recessionary gap? i. Write out the new planned expenditure function to reflect the change in lump sum taxes to close the recessionary gap of $4000. j. Graph the planned expenditure function. Show current equilibrium point, full employment Y, shift in planned expenditure for a change in lump-sum taxes. Label the autonomous points.