Question: Please answer this question Question 3 Consider an economy where the aggregate planned expenditure (AE) components are given by: - Consumption (C) = 700 +

Please answer this question

Question 3 Consider an economy where the aggregate planned expenditure (AE) components are given by: - Consumption (C) = 700 + 0.6Y - Investment (1) = 200 - Government Expenditure (G) = 150 - Exports (Ex) = 300 - Imports (Im) = 100 + 0.1Y a) Write the AE equation (simplified). b) Identify the autonomous component and the induced component. C) Graph the AE curve. Find and identify on the graph the equilibrium expenditure. Show on your graph the effect of an increase of 50 in government expenditure and find the new equilibrium expenditure. f) Find the expenditure multiplier

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