Place a green line (triangle symbol) on each of the previous graphs to indica anditure line for each economy. Then place a black paint (plus symbol) on each graph showing the new level of equilibrium output. (Hint: You can see the slope and vertical axis intercept of a line on the graph by selecting it. (?) (?) MPC-0.5 MPC-0.70 45-Degree Ling 46-Degree Line A 180 New AE Line 180 New AE Line 140 New Equilibrium New Equilibrium TOTAL EXPENDITURE (Billions of dollars TOTAL EXPENDITURE (Billions of dollars] AE Line AE Line 40 09 00 108 120 49 180 189 20 40 08 80 0 120 140 180 190 230 REAL GDP (Billions of dollars) REAL GDP (Billions of dollars) In the first economy (with MPC = 0.5), the $30 billion increase in investment causes equilibrium output to increase by |$ billion. In the second economy (with MPC = 0.70), the $30 billion increase in investment causes equilibrium output to increase by $ billion. Therefore, a higher MPC is associated with a_ multiplier higher or lower? Now, confirm your graphical analysis algebraically using the oversimplified multiplier formula: Multiplier = 1-MTG For the first economy, with an MPC of 0.5, the effect of the $30 billion increase in investment is as follows: multiplier options: Change in Equilibrium Output - Change in Total Expenditure x Multiplier 1 x (1 -0.70) 1 x (1 -0.5) Using the same method, the multiplier for the second economy is choices: (0.70, 2 , 0.3, 0.59, Change in Total 3.33) Expenditure choices: +$60 billion $30 billion +$30 billion $60 billion