Paragraph Styles QUESTION 1 1. 1. If the US has autonomous aggregate spending of $200 billion, consumes 70% of every dollar of income (MPC), plans to invest $100 billion. Assume there are no taxes, so Income (Y) = Disposable income (Yd) a. Set up the Aggregate Expenditure function include the consumption function. Using Y = 0 to 2,500 billion in 250 billion increments 2. b. At what point does the US economy break even or reaches a steady state where lu = 0. c. Graphically demonstrate your answer. Y=Yd AAE MPC Ip AE lu 250 500 750 1000 1250 1500 1750 2000 2250 2500 United States) Focus