How would I do a and b? 1. Using the following information:C = 200 + 0.9Yd| = 250G = 100T= 100Ya = Y-T, is disposable income.(a) Calculate the equilibrium level of income of this three-sector economy.(b) Calculate the spending multiplier.(c) Calculate the level of consumption at equilibrium in the economy.(d) Graph this three-sector model. Label everything.Now, we will explore the effects of expansionary fiscal policy on this model.The case of an increase in Government expenditures (Expansionary fiscal policy(e) Suppose that the government decides to increase government spendingtaxes constant, i.e. T=100, and G=200). Calculate the corresponding equi.(f)Colgula

Since you have posted a question with multiple sub-parts, we will solve the first three subparts for you. To get the remaining sub-part solved please repost the complete question and mention the sub-parts to be solved. At equilibrium, income equals aggregate expenditure in an economy.(a) Aggregate expenditure function in three-sector economy: AE = C + I + G=> AE = 200 + 0.9Yd + 250 + 100 => AE = 550 + 0.9(Y - T) => AE = 550 + 0.9 (Y-100) => AE = 550 + 0.9Y - 90 => AE = 460 + 0.9Y ----------------- At equilibrium; Y = AE => Y = 460 + 0.9Y => Y -0.9Y = 460 => 0.1Y = 460 => Y = (460 / 0.1) => Y = 4600 Hence, the equilibrium level of income is 4600 (b) Spending multiplier = 1 / (1 -MPC) Spending multiplier = 1 / (1-0.9) => Spending multiplier = 1 / 0.1 => Spending multiplier = 10 (c) C = 200 + 0.9Yd Yd=Y-T = 4600-100 = 4500 Therefore, C = 200 + 0.9Yd = 200 +0.9 × 4500 = 200+4050 = 4250