Problem on Keynesian Equilibrium & Recessionary/Inflationary gapsAssume the consumption schedule for the economy under your study is such thatC = 100 + 0.8Yd. Assume further that investment and net exports are autonomous (indicated by Ig and Xn); that is, planned investment and net exports are independent of the level of income and in the amount Ig = 40 (investment) and Xn = 10(net export).Recall also that in equilibrium the amount of domestic output produced (Y) is equal the aggregate expenditures (C + I + Xn), or Ye = C + Ig + Xn. Xn = net export G = government expenditure I = investment Yd = Y - T Y = level of output (NDP) T = tax C = consumptionShow your work clearly. Show how did you calculated your final answers.1.) Calculate the equilibrium level of YE for this economy. Now we can add the public sector to the economy model of section (a).Assume G (government expenditure) = 100 and T (tax) =50.Assuming all taxes are on personal income, investment remains Ig= 50.Export is 70 and import is 50. (Note: Net exports are again independent of the level of income.)2.) Determine the new equilibrium level of Ye.3.) What is the size of simple & net tax multipliers?4.) Explain why the addition of the public budget with a slight surplus increases the equilibrium income.5.) What would be the size of the recessionary or inflationary gap if the full-employment YF is 1050.6.) How big is the saving at the full-employment level NDP (YF).7.) How big is the consumption at the full-employment (YF).8.) Demonstrate your answer graphically showing aggregate expenditures, the actual equilibrium YE , 45 degree line, and the full-employment YF. On your graph show where is the inflationary/recessionary gap if there is any.