Question: please answer tjis question short answer is ok Use the below diagrams to answer the following questions: Assume starting from AE1 700 600 AE2 500

please answer tjis question short answer is ok

please answer tjis question short answer is okplease answer tjis question short answer is ok
Use the below diagrams to answer the following questions: Assume starting from AE1 700 600 AE2 500 AEl Aggregate Expenditure 400 300 B AE3 200 100 100 200 300 400 500 600 700 Real GDP P2 Price Level B PI P3 100 200 300 400 500 600 700 Real GDPa] Starting from AE1 if there were to be a reduction in governement expenditure; what would happen to the AE line?{1 Ma rk) how would this affect Price and Real GDP?{2 Mark] b] Name three induced factors which would change the slope ofthe AE Line? {3 marks] :2] If Price were to change from P1 to P2: name two autonmous expenditures that would be affected and how they would be affected {increase or decrease)? {4 marks]

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