Question 3: A simple Keynesian economy is described by the following set of equations: [3 = 25cc + ELEV I = 'l G = 1200 I = 400 M SUD a. llil'lil'hat is the intercept on the '1'\" axis for the consumption function. II.i"'i.I'hat is the autonomous {exogenous} oonsumption in the economy? What is the Marginal Propensity to Consume {nape} in this economy?' Compute the multiplier [it]. b. Find a numerical expression linlting planned aggregate expenditure to output. c. Find the equilibrium output in this economy. d. The government decides to increase its expenditure by at? = 1511 What would be the resulting increase in output? What would be the new level of output {Y'}? Answer: tintemepiis . . Answerabi @ Equilibrium: AE = y = Answer Ed} The resulting increase in output 'i" = New \"i" =