In an economy with no government and no foreignsectors, autonomous consumption is 250 billion, investment is 350 billion, and the marginal propensity to consume is 0.75

a. Draw the aggregate expenditure (AE) curve and indicate the equilibrium value .

b. What are the slope and vertical axis intercept of the AE curve?

c. Compute the multiplier.

d. If investment rises to$450 billion, what will be the new equilibrium real GDP?

e. What is the effect of $30 increase in autonomous exports on equilibrium income?