In an economy with a fixed price level, autonomous spending is $20 billion and the slope of the AE curve is 0.6. a. What is the equation of the AE curve? b. Calculate equilibrium expenditure. c....

In an economy with a fixed price level, autonomous spending is $20 billion and the slope of

the AE curve is 0.6.

a. What is the equation of the AE curve?

b. Calculate equilibrium expenditure.

c. Calculate the multiplier.

d. Calculate the shift of the aggregate demand

curve if investment increases by $1 billion.