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Question 1 (5 marks) a. Calculate AE given the information below and completely fill in the table. There is a practice exercise in Module 7.

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Question 1 (5 marks) a. Calculate AE given the information below and completely fill in the table. There is a practice exercise in Module 7. Please attempt the practice first. Examples are provided in Chapter 11. (2 marks) b. Where is equilibrium in this economy based on the table? State the level, don't just point to it or highlight it. (1 mark) c. Using the injections-withdrawals approach, demonstrate that the point you chose in part 2 is the equilibrium. At this point withdrawals = injections. Go to Chapter 11 if you forget how this is calculated. (1 mark) d. If the government increased its spending, what impact will this have on AE and equilibrium? (1 mark) Investments: $25 Government Spending: $32 Total Taxes Disposable C S G AE Income Income (AO) 96 10 105 106 11 110 119 12 114 132 14 119 145 16 125 170 18 130 182 19 140 194 20 150 214 22 157 257 30 185 283 31 200 309 32 135 Injections-Withdrawals Approach Item (Name the item Injections (place the $ Withdrawals(place the $ here) amount in this column) amount in this column) Totals

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