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Given Y = C +I +G+NX,C = C0 +bYd,I = I0,G = G0, and NX =...

Given Y = C +I +G+NX,C = C0 +bYd,I = I0,G = G0, and NX = NX0,

where Yd = Y −T, and T = T0 +tY and C0 = 80, b = 0.5, I0 = 35 and G = 20, NX = 0, T0 = 30 and t = 0.20. Here T is the total amount of taxes the households have to pay with T0 being the fixed amount of taxes (regardless of income) and t is the tax rate (as a fraction of income Y). Find the equilibrium national income, the aggregate household consumption C in equilibrium and the total amount of taxes paid by the households.

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