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Q4. Suppose the government Daikai balances its budget over a five-year period. Autonomous taxes are $50 and the marginal tax rate is 25%. The following table shows the level of GDP and government expenditure in each of the first 5 years: a) Fill in column (4) and (5) from year 1 to year 4. b) What level of government spending in Year 5 will balance the budget over the five-year cycle?.

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Q4. Suppose the government Daikai balances its budget over a five-year period. Autonomous taxes are $50 and the marginal tax rate is 25%. The following table shows the level of GDP and government expenditure in each of the first 5 years: a) Fill in column (4) and (5) from year 1 to year 4. b) What level of government spending in Year 5 will balance the budget over the five-year cycle?

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