/

Aggregate expenditure
consumer
- spending

not -
-

mpc:
055
↑
whenthe real
7
disposable
so the income
consumptionexpelature 400
:

Y AE GDP
=
=

-consumption function the

illustrate relationship ptun consumer expenditure DI=GDP-Taxes +
andtotal disposable income in the economy. Transfer payment
/ c (0.85)(Yd)
=
+ d :GDP-(Tax-transfer)

(4081 (8.85)(8)+
:

q
(b) ↑ =Y -
T

/ 2 1 G 400 0.85(y T)
=
+ -
+ +
-
S I u 408
= =

+ NX 785 500 200

+
+ -
it
(a)c = 0.85%d 400 +

AF
↓ 408 0.85(4 11087+
=

⑤
-

imp0s:T5 6.67times
+

m
=
=

785 + 500 200

+
- 100

⑤
- -
AE:
1783 + 0.854 935
1785-
. -

800 AE 850 =

0.85Y,
- +

22: 800 -

785:5
X AE
=

y 850 0.854
= +

(e) ay M(AI) =
4 0.854 = 850
-

(t)
consumer
x
expenditure E/

⑲
+y (6.67)/GI)
=

(6.673(15)
3 =

5666.67-
HE0 =

the E0

increasein- ↑ ↓
= 1088,05

IveNet
1458 I
IeakBI y2.yp 166.75
+

+ 180- 05
32 5666.67
=

5666.67576672
n225566.72
Initial E -> change in G

effect(increase of
multiplier is million
but
buty increase 100.55