1. Assume: mpc= 0.5; a =10;T = 70; G = 75; I = 20 a. Graph the Aggregate Expenditure function using the graph paper below. b. Add the 45-degree line. c. On your graph above, show the level of equilibrium income. d. Algebraically solve for the level of equilibrium income. e. Assume a wave of pessimism in the business world decreases the investment function to 10. Everything else stays the same. What is the new Aggregate Expenditure equation? f. Show the new AE curve on the chart. g. On the graph above, nd the new equilibrium level of income. h. Using algebra, find the new equilibrium level of income. i. How much did investment change by? j. How much did equilibrium income change by? k. What is the value of the multiplier? 1. Why did the increase in investment lead to a larger equilibrium income increase? Explain in words