the equation for the aggregate expenditure (AE) function

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  Is present even when there is no income, or that expenditure which is not dependent on the income. The multiplier equation is? Multiplier = 1/(1-MPE). The expenditures function that reflects the table below is? There is no table here!

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  s=wpd&c=dsp&k=aggregate+expenditures This solutions discusses the components of Aggregate Expenditure (AE) based on the formula: AE = C + I + G + (X - M)

• aggregate expenditure function (AE)

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  319424 Aggregate Supply and Demand Consider the following simplified AE function: AE = 350+0.8Y+0.1(M/P) where AE is desired aggregate expenditure, Y is real GDP, M is private sector's nominal wealth, and P is the price level.

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  Aggregate expenditure only consists of consumption spending and hence AE = C = 800 + 0.8Y For equilibrium we need to find AP = AE Or 800 + 0.8Y = Y, Or 800 = 0.2Y Or Y = 4000. 3) Use figure 2 below to answer to the following question:

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  Aggregate expenditure is given to be AE = C = 800 + 0.8Y At equilibrium, the 45-degree line intersects the aggregate expenditure curve, so that AP = AE. Hence, we have Y = 800 + 0.8Y or Y - 0.8Y = 800 or 0.2Y = 800 or Y = 800/0.2 = 4000.