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Answer:Question 3]A] MPC is the slope of theconsumption function. For the given case consumption function has aslope of 0.6. Hence MPC is 0.6B]Government budget has anequation of revenues - spending. Here revenues (taxes) are 200while spending is 300. Hence budget deficit amounts to 300-200 =100C]At equilibrium, PAE =YC + I + G = Y170 + 0.6(Y - 200) + 250 +300 = Y170 + 0.6Y - 120 + 250 + 300= Y600 = 0.4YYE = 1500.GDP = 1500D]Governmen ... See the full answer