Question 1 "Answered already" will help you to answer question 2 and 3 "I have uploaded pictures for question already answered table"

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.

b.Where is equilibrium in this economy based on the table? State the level, don't just point to it or highlight it.

c.Using the injections-withdrawals approach, demonstrate that the point you chose in part 2 is the equilibrium. At this point withdrawals = injections. Go to Chapter 11 if you forget how this is calculated. (

Taxes: $10 at each level of income

Investments: $25

Government Spending: $35

Above are the answer for Question 1 that will help you answer question 2 and 3

Question 2

a.What is the multiplier if households have an MPC of 0.8?

b.Create a table similar to Figure 10.8 in your textbook. Assume that the households have an MPC of 0.60 and there is a $9 billion increase to investment spending. For full marks this information must be presented in a table your answers calculated to 2 decimal places and all rows completed.

Question 3

Name and explain two factors that change aggregate supply, providing an example of each.

Check pictures for question 1 table(Answered) and question 2 table (Need to be answered) with question 3

Taxes: $10 at each level of income Investments: $25 Government Spending: $35 Total Taxes Disposable 0 AE Income Income (A0) 100 10 90 125 -35 25 35 185 105 10 95 130 40 25 35 190 115 10 105 135 -30 25 35 195 130 10 120 145 -25 25 35 205 150 10 140 155 -15 25 35 215 170 10 160 165 -5 25 35 225 190 10 180 180 0 25 35 240 210 10 200 190 10 25 35 250 230 10 220 200 20 25 35 260 250 10 240 210 30 25 35 270 280 10 270 220 50 25 35 280 310 10 300 240 60 25 35 300 AutoSave O OFF wa Calculating Aggregate Demand - Saved to my Mac Q Home Insert Draw Design Layout References Mailings Review View ? Tell me Share Comments 1 10 , 1 , 17 , 1 , 12, 1 13, 1 , 14 , 1 , 15, 1, 161 2, 17, , 18 1, 19 Injections-Withdrawals Approach Item (Name the item Injections (place the $ Withdrawals(place the $ here) amount in this column) amount in this column) Totals Question 2 (3 marks) a. What is the multiplier if households have an MPC of 0.8? (1 mark) b. Create a table similar to Figure 10.8 in your textbook. Assume that the households have an MPC of 0.60 and there is a $9 billion increase to investment spending. For full marks this information must be presented in a table your answers calculated to 2 decimal places and all rows completed. (2 marks) Change in Change in Change in income consumption savings Round 1 Round 2 Round 3 Round 4 Round 5 All others Total Question 3 (2 marks) Name and explain two factors that change aggregate supply, providing an example of each. (1 mark each) Page 2 of 3 497 words English (Canada) Focus E + 171%