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What is the slope of the ae line

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Reference no: EM132550777

1- Aggregate expenditure function of Berberistan is given as: AE=500+0.5 Y

a) What is the slope of the AE line?

b) What is the equilibrium income?

c) What is the value of multiplier?

d) What is the change in the equilibrium income if government spending increases by 100?

e) What is the unplanned change in inventories if firms produce 1200 rather than the equilibrium income?

Reference no: EM132550777

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