In the Keynesian cross, assume that the consumption function is given byC = 500 + 0.8 (Y -

a Suppose that the real interest rate (r) is 5. Write the equation of the plannedexpenditure ( PE,). Draw planned expenditure ( PE,) as a function of income. Label thisgraph "figure 1".<PE=C+G+I<PE=500+0.8(Y-1000)+100-50r+1000-=800+0.8Y+50re=1050+0.8Y-b. Draw a 450 line in figure 1 and find the value of equilibrium level of income on theKeynesian cross (Y1).~1050+0.8Y=Y-0.2Y=1050-Y*-5250-c Calculate the government purchases multiplier. And interpret your answer.5255-5250=5-AS G ADD 1, Y INCREASE 5