1i) What is discretionary fiscal impulse? – (5 marks) ii) Assuming the UK economy taxes and government spending at equil

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1i) What is discretionary fiscal impulse? – (5 marks)
ii) Assuming the UK economy taxes and government spending at
equilibrium level of output for 2021 is each £10 trillion, use the
cyclically adjusted budget deficit formula
[G(ye)−T(ye)≡[G(yt)−T(yt)]−alpha(ye−yt)]
(a) Derive and explain the kind of budget implemented by the UK
government and by how much if actual output generated is £18.0
trillion (show all workings) – (10 marks)
(b) Derive and explain the kind of budget implemented by the UK
government and by how much if actual output generated is
£6.0trillion (show all workings) – (10 marks)
(iii) Using the debt dynamics equation: delta "b" =
d + (r−gamma "y")b, discuss three options available to the
government to balance the ‘question
‘b(ii)’ economy: (12 marks; i.e., 4 marks each)
(iv) what is the least painful option in the answer you gave for
question ‘c’, and why? – (3 marks)