On the following graph, use the blue curve to plot investment as a function of disposable income: 400 350 Investment 300 250 200 150 100 50 Real Net Exports (Billions of Dollars)
On the following graph, use the blue curve to plot investment as a function of disposable income: 400 350 Investment 300 250 200 150 100 50 Real Net Exports (Billions of Dollars)
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 3.7P
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Transcribed Image Text:On the following graph, use the blue curve to plot investment as a function of disposable income:
(?)
400
350
Investment
300
250
200
150
100
50
Real Net Exports (Billions of Dollars)
Transcribed Image Text:4. Components of aggregate expenditure
Suppose the following table shows the components of aggregate expenditure for an economy when disposable income is $400 billion and when it is
$650 billion:
Disposable Income
$400 billion $650 billion
Consumption
$550 billion
$575 billion
Investment
$100 billion
$100 billion
Government Purchases
$125 billion
$125 billion
Net Exports
$150 billion
$140 billion
Aggregate Expenditure
$925 billion
$940 billion
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