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Draw the aggregate expenditure curve

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Reference no: EM132472850

In an economy with no government and no foreign sectors, autonomous consumption is 250 billion, investment is 350 billion, and the marginal propensity to consume, or MPC, is 0.75. I need a graph drawn for AE Graph drawn for A)

a) Draw the aggregate expenditure (AE) curve and indicate the equilibrium value.

b) What are the slope and the vertical axis intercept if the AE curve?

c) Compute the multiplier

d) If investment rises to 450 billion what will be the new equilibrium real GDP?

e) What is the effect of 30 increase in autonomous exports on equilibrium income

Reference no: EM132472850

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