Answer to Question #94284 in Macroeconomics for Nomthandazo

Question

to get the equilibrium level of income in the simple Keynesian model
(1) we multiply the autonomous aggregate spending by the multiplier
(2) we add all the autonomous aggregate spending component and subtract the multiplier
(3) we divide the multiplier by aggregate demand
(4) we multiply the interest rate by the multiplier

Answer 1

(1) we multiply the autonomous aggregate spending by the multiplier