Answer to Question #94657 in Macroeconomics for Steve

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 interest rate by the multiplier

Answer 1

2)we add all the autonomous aggregate spending component and subtract the multiplier