Use the following information and answer the questions that follow. C = 1860 + 0,91Y I = 1200 G = 1550 X = 890 M = 670 t = 0,36 1.1.1 Calculate and write down the Total Expenditure function of this economy.

TE = ___________________________________________________________

1.1.2 Calculate the equilibrium level of income.

Equilibrium level of income = _____________________________________

1.1.3 Graphically illustrate the TE function and the equilibrium level of income from your answers above. Make sure to label your graph completely

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