In an economy autonomous spending is $20 trillion and the slope of the AE curve is 0.6.

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In an economy autonomous spending is $20 trillion and the slope of the AE curve is 0.6.
a. What is the equation of the AE curve?
b. Calculate equilibrium expenditure.
c. Calculate the multiplier if the price level is unchanged.

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Macroeconomics Canada in the Global Environment

ISBN: 978-0321778109

8th edition

Authors: Michael Parkin, Robin Bade

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Question Posted: Dec 19, 2015 05:05 AM

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In an economy autonomous spending is $20 trillion and the slope of the AE curve is 0.6.

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a The equation of the AE curve is AE 20 06Y where T is ...View the full answer

Macroeconomics Canada in the Global Environment

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