Homework 3: Expenditure Functions 3.1) Consumption is a function of income, Y. Aggregate Expenditure = AB = Consumption + Investment + Government + Exports - Imports = 100 + 0.8*Y What is the equilibrium level of output? (Please give exact answers for these problems.) 3.2) What would be happening to inventories if production were 400? (Be sure to indicate whether your answer is positive or negative.) 3.3) What would be the change in to inventories if production were 700? (Enter a positive number if inventories are rising, and a negative number if they're falling.) 3.4) What would be the change in the equilibrium if government spending rose by 10? 3.5) What is the multiplier for the change in G here