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    the level of real GDP demanded

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    Assume the simple spending multiplier equals 10. Determine the size and direction of any shifts in the aggregate expenditure line, the level of real GDP demanded, and the aggregate demand curve for each of the following changes in autonomous spending:
    a. Autonomous spending rises by $8 billion.
    b. Autonomous spending falls by $5 billion.
    c. Autonomous spending rises by $20 billion.

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    https://brainmass.com/economics/expenditure-multipliers/level-real-gdp-demanded-17161

    Solution Preview

    a. Autonomous spending rises by $8 billion.

    From AE = C + I + G + EX - IM
    When the simple spending multiplier equals 10
    The $8 billion rise in spending will increase real GDP by 8*10=80 billion
    Then ...

    Solution Summary

    Determine the size and direction of any shifts in the aggregate expenditure line, the level of real GDP demanded, and the aggregate demand curve for each of the following changes in autonomous spending.

    $2.19