An economy is described by the following equations:

C $=1,500+0\mathrm{.}5($Y $$ T$)$

Ip $=1,000$

G $=1,600$

NX $=200$

T $=1,600$

Y$*=7,500$

a$.$ Find a numerical equation linking planned aggregate expenditure to output.

Instructions: Round the value for mpc to one decimal place.

PAE $=$

$+$

Y

b$.$ Find autonomous expenditure and induced expenditure in this economy.

Instructions: Round the value for mpc to one decimal place.

Autonomous expenditure:

Induced expenditure:

Y