Essay
Answer parts (a)-(e)below based on the AE equation AE = 2,500 + 0.9Y.
(a)What is the level of autonomous expenditures?
(b)If income is 1,000 what is the level of induced expenditures?
(c)What is the mpe?
(d)What is the value of the multiplier?
(e)What is the level of equilibrium income?
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