A simple closed economy with no government has autonomous consumption expenditures of $300, a marginal Aggregate Expenditure Function propensity to save equal to 0.40, and a level of investment equal to $100. 1,400- 45 line The aggregate expenditure function for this economy can be 1.200- written as: (Round the intercept term to the nearest whole number and the slope term to two decimal places.) 1.000- AE = 800- Desired Aggregate Expenditure (AB) Use the line drawing tool to draw and label the AE line. Make 600- sure that the line starts at disposable income of 0. The consumption function should intersect the 45 degree line. 400- Carefully follow the instructions above, and only draw the required objects. 200- 0 200 400 600 800 1,000 1,200 1.400 Actual Nominal Income (Y) (0,0)Refer to the diagram to the right. The equilibrium level of expenditures for which the actual national income is equal to Aggregate Expenditure Function the desired aggregate expenditure is $ . (Round your 1.800- 459 line response to the nearest dollar.) 1.600- 1. Use the point drawing tool to identify the equilibrium level AE of income in this economy and label it 'E'. 1.400- 2. Use the point drawing tool to identify a level of income that 1.200- is consistent with the case in which firms' inventories would 1.000- Desired Aggregate Expenditure be declining and label it 'A'. Point A should be on the AE line. 800 Carefully follow the instructions above, and only draw the required objects. 600- 400 200- 300 600 900 1,200 1,500 1,800 Actual National Income