What is the impact of an increase in government spending on aggregate expenditures and economic equilibrium? In order to get full points, draw aggregate expenditures curve clearly on output-income space (5 points) and clearly label each curve and points at which they intersect with the vertical axis. Then show equilibrium of the economy before and after the rise in government spending (5 points). In your own words, describe how government spending affects aggregate demand in addition to graph (5 points). If mpc 0.9, calculate the multiplier of government spending (5 points). What is the tas multiplier of this economy (5 points)?