Question 1 (9 marks) a. Calculate AE given the information below and completely fill in the table. There is a practice exercise in Module 7. Please attempt the practice first. Examples are provided in Chapter 11 , specifically Table 11.6, of the textbook. (4 marks) b. Where is equilibrium in this economy based on the table? State the level, don't just point to it or highlight it. (1 mark) c. Using the injections-withdrawals approach, demonstrate that the point you chose in part b is the equilibrium. At this point withdrawals = injections. Go to Chapter 11 if you forget how this is calculated. (1 mark) d. If the government increased its spending to 29 , what impact will this have on AE and equilibrium? What is the new equilibrium? Explain why and draw a graph illustrating the impact (similar to Figure 11.6). (3 marks)| Investments: $30 Government Spending: $25 Iniections-Withdrawals Annroach Question 2 (3 marks) If the full-employment GDP was $15 billion above the equilibrium GDP, would we have a recessionary or inflationary expenditure gap? Explain. Draw a diagram to illustrate. This question is not connected to Question 1. Question 3 (3 marks) a. What is the multiplier if households have an MPC of 0.71 ? Calculate to 2 decimal places. (1 mark) b. Create a table similar to Figure 10.7 (10.8 in old 15th edition) in your textbook. Assume that the households have an MPC of 0.71 and there is a $12 billion increase to investment spending. For full marks this information must be presented in a table with each answer calculated to 2decimalplaces and all rows completed. (2 marks) Question 4 (5 marks) One component of the GDP equation is net exports. Would we prefer to see positive net exports or negative net exports? Explain why. What 2 main factors affect net export spending? Provide, and summarize, 2 articles that back up your opinion. Your references need to be Canadian, and written within the last three months. Please remember to provide properly cited references for this question or you will receive 0 for this