What is the economy''s equilibrium aggregate expenditure

Reference no: EM13791624

3.5. In the economy of Kaushi Toivo David Anguuo, autonomous consumption expenditure is N$185 million, and the marginal propensity to consume is 0.75. Investment is N$150 million, government expenditure is N$100 million, and net taxes are N$80 million. Investment, government expenditure, and taxes are constant they do not vary with income. The economy does not trade with the rest of the world. 3.5(a) Draw the aggregate expenditure curve.3.5(b) What is the Kaushi Toivo David Anguuo's economy autonomous aggregate expenditure? [2 marks] 3.5(c) What is the size of the multiplier in Kaushi Toivo David Anguuo's economy? [2 marks] 3.5(d) What is the Kaushi Toivo David Anguuo's aggregate planned expenditure and what is happening to inventories when real GDP is N$1,100 million? [2 marks] 3.5(e) What is the economy's equilibrium aggregate expenditure?

Reference no: EM13791624

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