I just need help on f g and h 84%vewZoomAdd PageInsertTableChartTextShapeMediaCommentCollaborateIn the country of Arcadia, the mìnimum amount of consumption spending that will occur in agiven year is $50- that is, no matter what level of income households have, the aggregateamount of consumption spending in the economy will be at least $50. In addition, for every extradollar of national income, consumption spending will increase by $0.75. (Note: For the entiretyof this problem, assume that Taxes = transfers = 0, and the aggregate price level in Arcadia isfixed.)a. What is the marginal propensity to consume in Arcadia?600600500150650-50700700575150725-25800800650150800%3D900900725150875251,0001,00080015095050The marginal propensity to consume in Arcadia is 0.751,1001,1008751501,02575b. Write out the consumption function for the Arcadian economy.1,2001,2009501501,100100C= 50 + 0.75YIn 2019 in Arcadia, planned investment expenditure was $150, there was no governmentspending or taxation or government transfers and no exports or imports.f. Suppose that planned investment increased to $250. Write out the new planned AggregateExpenditure function.c. Write out the planned Aggregate Expenditure function for Arcadia.g. What is the value of the multiplier in Arcadia? (Note: you are being asked to provide anumerical answer)AE= 200 + 0.75d If real GDP (i.e. value of all production in the Arcadian economy) in 2019 were $600,what would be the level of planned Aggregate Expenditure? Would production be exactlyequal to expenditure, or would suppliers have to reduce or increase inventories? If you'veanswered that suppliers would have to reduce or increase inventories, specify the amountof the change and be sure to indicate whether it is an increase or a decrease.h. What is the new income-expenditure equilibrium real GDP? (Noté: in addition toproviding a numerical answer, you must show your work. You may use either a table oralgebra to arrive at your answer. If you want to use a table, you may use Table 1 below. Ifyou use the table, you do not need to fill in all of the blank cells. You may just fill inPlanned Expenditure: AE= $650Therefore, the aggregate expenditure is not equal to the production , as theproduction is only $600. So, there is need to increase inventories of $50enough cells to help you arrive at your answer.) ĮTYPE YOUR ANSWER BELOW (AND FILLIN TABLE 1 BELOW IF YOU ARE USING THE TABLE TO SUPPORT YOUR ANSWER. IF YOUARE USING ALGEBRA TO ANSWER THE QUESTION YOU CAN JUST SHOW YOUR WORKBELOW AND YOU DO NOT NEED TO ALSO FILL IN THE TABLE).1e. What was the income-expenditure equilibrium level of real GDP in Arcadia in 2019?Support your answer by filling in all of the blank cells in the table below. (Note: youneed to provide a numerical answer for the income-expenditure equilibrium level ofGDP in Arcadia in 2019 AND fill in the table below)C= 50 + 0.75yTable 1. For (optional) use with Problem 1 part (h)I=150AE= 200 +0.75YPlannedDisposableIncomePlannedAggregateExpenditure(AEp)UnplannedConsumption Investment(C)InvestmentReal GDP(YD)(,)(L)PlannedDisposableAggregateExpenditure(AE,)PlannedUnplannedInvestmentConsumption Investment(C)IncomeReal GDP(Yp)(I,)(IL)500500425150575-75Page 1 of 3Page 2 of 3

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(f). we already have autonomous consumption of $50 and MPC is 0.75. Initially planned expenditure is…