3.ā ā Consider an economy described by the following equations: Y=C+I+G C=200+0.7(Y-T) 1=240-30Š³ G=170 T=100 Where Y=GDP; C-consumption; T-Taxes, G-government purchases; r-interest rate If the economy were at full employment (that is, at its natural rate of output), GDP would a. What is the marginal propensity to consume? (1) b. Suppose the central bank adjusts money supply to maintain the interest rate at 1%, so =1. Solve for GDP. How does it compare to the full employment level? (3+1=4) C. Assuming no change in monetary policy, what change in government purchases would restore full employment? (3) d. Assuming no change in fiscal policy, what change in interest rate would restore full employment? (3)