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Derive the equation for the ae curve

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Reference no: EM132661388

For an economy in which government expenditure is 260 billion, exports are 90 billion imports are 30% of real gdp, autonomous consumption is 240 billion, investment is 320 billion and the marginal propensity to save is 0.1.

Derive the equation for the AE curve

What are the values of the slope and the vertical axis intercept of the AE curve?

What it the multiplier?

What will be the new equilibrium real group if investment rises to 460 billion?

What is the impact on balance of trade in the question before?

Reference no: EM132661388

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