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................. sQ2. In a demand-determined economy with a constant price level, autonomous spending is $20 million, and the slope of the AE curve is 0.6.

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sQ2. In a demand-determined economy with a constant price level, autonomous spending is $20 million, and the slope of the AE curve is 0.6. a. What is the equation of the AE curve? [1 mark] b. Calculate equilibrium expenditure. [2 marks] C. Calculate the multiplier. [1 mark] d. If investment expenditures increase by $1 million, what is the new level of equilibrium GDP?[1 mark]

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