Assume we have an economy where the Price Level is constant. We can describe that economy with the following equations (below).

C = 0.8(DI) + 400	C = Consumption Expenditure, DI = Disposable Income
I = 600	I = Investment Expenditure
G = 3400	G = Government Expenditure
X = 500	X = Expenditure on Exports
M = 500	M = Expenditure on Imports
T = 1000 + 0.2Y	T = Tax Revenue, Y = real GDP
DI = Y - T
Yp = 12000	Yp = Potential GDP

a. Does this economy have a budget deficit, budget surplus, or is the budget balanced?

b. Calculate the structural budget deficit for this economy.