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Principles of Macroeconomics Assignment #5: Aggregate Expenditures Analysis Complete the table (Numbers In Billions) The MPC=.75: Aggregate GDP=Income Consumption Investment Expenditures $100 $125 $25 $150 $200 $200 $25 $225 $300 __ $25 _ $400 _ $25 _ $500 _ $25 __ $600 _ $25 Possible Levels of Employment at Each GDP Level (Numbers in Millions) GDP=Income Employment $100 30 $200 40 $300 50 $400 60 $500 70 $600 80 1. What is the muiplier? Show the calculation. 2. What is the Break-Even level of Income? (Do not Include Investment) 31 What is the Equilibrium level of Aggregate Expenditures? 4. if full employment in the economy is 60 million workers, would the economy he at full employment? 5. By how much would Aggregate Expenditures increase if Investment increased by $12 billion? (Do not try to reconstruct the table. Use the multiplier) As always, Explain your Answers