The aggregate expenditures of the hypothetical country shown includes $2 billion in investment expenditures, $3 billion in government expenditures, and $1 billion in exports. At a real GDP of $18 billion, consumption expenditures less imports equal $12 billion and imports equal $2 billion. Use this information to graph the aggregate expenditures (AE) function. Assume autonomous consumption and autonomous imports are $0. 20 45 degree line A 18 AE 16 14 12 10 8. 6. 2 4 10 12 14 16 18 20 Real GDP (in billions of $) Aggregate planned expenditures (in billions of $)

The aggregate expenditures of the hypothetical country shown includes $2 billion in investment expenditures, $3 billion in government expenditures, and $1 billion in exports. At a real GDP of $18 billion, consumption expenditures less imports equal $12 billion and imports equal $2 billion. Use this information to graph the aggregate expenditures (AE) function. Assume autonomous consumption and autonomous imports are $0. 20 45 degree line A 18 AE 16 14 12 10 8. 6. 2 4 10 12 14 16 18 20 Real GDP (in billions of $) Aggregate planned expenditures (in billions of $)

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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