Essay
Answer parts (a) - (e) below based on the AE equation AE = 2500 + 0.9Y.
(a) What is the level of autonomous expenditures?
(b) If income is 1000 what is the level of induced expenditures?
(c) What is the slope of the AE function?
(d) What is the value of the multiplier?
(e) What is the level of equilibrium income?
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(a) Autonomous expenditures are determin...View Answer
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