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    Macroeconomics - Determine the level of Income Algebraically

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    Answer question 4 only in attached document.

    (AE = Total Spending, AP = Total Production or Total Output)

    (Hint: The equilibrium level exists where AE = AP. Graphically, this is expressed at the point of intersection between the AE and AP curves. In this problem, consumption spending is the only component of AE. Therefore, equilibrium exists where the expenditures function intersects the AP curve (the 45 degree line).

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    Solution Preview

    Since the AP curve is a line at an inclination of 45 deg with the +X- axis, its slope ...

    Solution Summary

    The expert determines the level of income algebraically for macroeconomics. A complete, neat and step-by-step solution is provided in the attached file.