Question: 7. (LO 3) Irkanias aggregate expenditures function is shown in Figure 6.13. a) What is the value of equilibrium income? b) What is the value

7. (LO 3) Irkania’s aggregate expenditures function is shown in Figure 6.13.

a) What is the value of equilibrium income?

b) What is the value of the multiplier in Irkania?

c) If investment were to increase by $2000, draw in the new AE curve labelled AE2.

d) What is the new level of equilibrium income?

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