Question: 3) b) d) E A52 .43 351 T: A _____ C 3 AE 2L0 1,000 3 2 E 60?) | 8:3 . I E; 270

3) b) d) E A52 .43 351 T: A _____ C 3 AE 2L0 1,000 3 2 E 60?) | 8:3 . I E; 270 g I (I: 45 i . l I A 1,000 1,500 Aggregate output {$ millions) Referring to Figure above, write the equation for aggregate expenditure AE 1 by explaining how to nd the intercept and slope. Suppose AE 1, AEZ and AE3 are parallel. Calculate the value of Point A (E: B? Show your work. Assuming the economy's aggregate expenditure line is AB 1, calculate how much increase would be in aggregate equilibrium output if there is a $10 million increase in planned investment. Show your work. Now suppose the economy's aggregate expenditure line is AEQ. Calculate how much increase would be in aggregate equilibrium output if there is a $10 million increase in planned investment. Show your work
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
