QUESTIONS 1. It is generally recommended to save more for personally as well as nationally. a) Discuss why saving is essential for personal as well as national economy especially for economic growth. (15 Points} b) Is there any possibility that saving is not good personally and especially nationally? If there is, discuss how saving hurts the economy. (15 Points) U'i E .43 '5 s a: B Q E g i 4% g 2.000 3"\" 700 g 400 1:: 2,000 A Aggregate output (5 billions) a) Discuss how (what causes) AE line shifts from AE: to AEz. (15 Points) b} Along aggregate expenditure AEI, calculate the WC cf: .MPS. (15 Points) 0) Calculate the value of Point A d}: B. (15 Points) d} Calculate the value of the expenditure multiplier. (10 Points} e) If aggregate expenditures are represented by AE2 and government spending increases by $30 billion, calculate the equilibrium aggregate output increases. (15 Points)