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Your research into a nation has yielded the following information: Autonomous expenditure (A) = $3,000 Gross Investment (t) = $2,000 Government purchases (G) = $2,500

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Your research into a nation has yielded the following information: Autonomous expenditure (A) = $3,000 Gross Investment (t) = $2,000 Government purchases (G) = $2,500 Net exports (NX) = $900 Taxes (T) = $2,100 MPC = 0.9 Instructions: Round your answers to nearest whole number. For the coefficient to Y, round your answer to two decimal places. a. Substitute the values above into the equation: AE = A +[MPC * (Y-T))+1+G+ NX to determine the abbreviated equation for aggregate expenditures (AE) AE b. Using the abbreviated equation you computed in part a, complete the table below. Aggregate Real GDP Expenditurea (AE) (dollars) (dollars) 0 $ 8,000 16,000 24,000 Knowing that AFY nt the aurium level of nutnut what is the onlibrium level of unit for this nation? c. Knowing that AE = Y at the equilibrium level of output, what is the equilibrium level of output for this nation? Ye: $ d. What is the expenditures multiplier for this economy? e. If government purchases increase by $1,000, from $2.500 to $3,500, what is the new equilibrium level of output? Yeis

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