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Please help with part (c) by providing explanations The diagram to the right shows desired aggregate expenditure for the economy of Sunset Island. The AE
Please help with part (c) by providing explanations
The diagram to the right shows desired aggregate expenditure for the economy of Sunset Island. The AE curve Aggregate Expenditure and Equilibrium assumes a net tax rate (t) of 10 percent, a marginal 1,500- propensity to consume of 0.75, autonomous exports of $100 1,400- 459line 1,300- AE billion, and a marginal propensity to import (m) of 15 percent. 1,200- a. What is the level of desired investment expenditure (1)? 1,100- 1,000- The level of desired investment expenditure is $ 200 billion. 900- (Round your response to the nearest whole number.) 800- Desired Aggregate Expenditures ($ billions) 700- b. What is the level of government purchases (G)? 600- The level of government purchases is $ 200 billion. (Round I + G your response to the nearest whole number.) c. What is the autonomous portion of consumption? The autonomous portion of consumption is $ billion. 200 400 600 800 1,000 1,200 1,400 (Round your response to the nearest whole number.) National Income ($ billions)Step by Step Solution
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