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The Investments are $30 and the Government Spending $25. Using the following information complete the chart. Show your steps. (3 marks) 1. Determine AE using

The Investments are $30 and the Government Spending $25. Using the following information complete the chart. Show your steps. (3 marks)

1. Determine AE using the data below, then fully fill out the table. 1b. where is the economy's equilibrium?

2. Confirm the equilibrium at the location you selected in part b using the injections-withdrawals method. Withdrawals now equal injections.

3. How would an increase in government spending to $29 affect AE and equilibrium?

Domestic Output

Taxes

Disposable Income

C

I

S

G

AE

100

10

90

110

113

11

102

114

120

15

105

107

135

20

115

111

145

24

121

115

166

27

139

128

198

35

163

141

207

42

165

152

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