Consider that the autonomous spending in Sasukistan is composed of the usual expenditure components, which adds up to 200 Sasukistan Dollars (in millions) and an average consumer saves and consumes MPS and MPC portions of their disposable income.

a)Draw a diagram to show the Aggregate Expenditure and Demand side equilibrium in Sasukistan.

b)Show the following effects on the above equilibrium on three separate graphs:

i) Sasukistan people expect high growth rates in the future.

ii)There is a global recession.

iii)Domestic prices rise

c) Obtain the Aggregate Demand curve by using the above iii