Question 1 (9 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, specifically Table 11.6, of the textbook. (4 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 b 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 to 29, what impact will this have on AE and equilibrium? What is the new equilibrium? Explain why and draw a graph illustrating the impact (similar to Figure 11.6). (3 marks)| Investments: $30 Government Spending: $25 Domestic Taxes Disposable C S G AE Output Income 100 10 110 113 11 114 120 15 107 135 20 111 145 24 115 166 27 128 198 35 141 207 42 152 225 51 166 245 67 173 260 75 176 300 89 201 Injections-Withdrawals Approach Item (Name the item Injections (place the $ Withdrawals (place the $ here amount in this column) amount in this column) TotalsQuestion 2 (3 marks) If the full-employment GDP was $15 billion above the equilibrium GDP, would we have a recessionary or inflationary expenditure gap? Explain. Draw a diagram to illustrate. This question is not connected to Question 1. Question 3 (3 marks) a. What is the multiplier if households have an MPC of 0.71? Calculate to 2 decimal places. (1 mark) b. Create a table similar to Figure 10.7 (10.8 in old 15" edition) in your textbook. Assume that the households have an MPC of 0.71 and there is a $12 billion increase to investment spending. For full marks this information must be presented in a table with each answer calculated to 2 decimal places and all rows completed. (2 marks) Change in Change in Change in income consumption savings Round 1 12.00 8.52 3.48 Round 2 Round 3 Round 4 Round 5 Subsequent rounds Total Question 4 (5 marks) One component of the GDP equation is net exports. Would we prefer to see positive net exports or negative net exports? Explain why. What 2 main factors affect net export spending? Provide, and summarize, 2 articles that back up your opinion. Your references need to be Canadian, and written within the last three months. Please remember to provide properly cited references for this question or you will receive 0 for this