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# 1 Please be carefully when drawing the gr…

Question 1Please be carefully when drawing the graph, the last question I asked like this was answered incorrectly…The economy is depicted by the expenditures function as shown.Suppose that the government decided to increase government spending by \$4 trillion.Using the line drawing tool​, draw the new expenditure line after the increase in government spending. Properly label your line.Carefully follow the instructions​ above, and only draw the required objects.Question 2Suppose that the economy is depicted by the following​ relationship:Expenditures​ = C​ I​ G​ X​where: C​ = \$100​ 0.90 (Y−​T)G​ = \$500T​ = \$500I​ = \$200X​ = \$150The economy is in equilibrium at a level of real GDP or income of \$ _________(Round your answer to the nearest​ dollar.)Now suppose that the government decides to increase government spending by \$125.What is the new equilibrium level of GDP or​ income? \$_________ ​(Round your answer to the nearest​ dollar.)

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