Use the orange line (square symbol) to plot a 45-degree line on this graph. Then use the blue points (circle symbols) to plot the aggregate expenditure line for this economy. Also, use the black point (plus symbol) to indicate the equilibrium output at this price level. 6. Aggregate expenditure and incomeSuppose the following table shows consumption (C), investment (I), government purchases (G), and net exports (NX) in a hypothetical economyfor various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.Real GDPIGNX(Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars)500250250200-150600325250200-150700400250200-150800475250200-150900550250200-150 100090045-Degree Line800AE Line700Equilibrium Output6005004004005006007008009001000REAL GDP (Billions of dollars)AGGREGATE EXPENDITURES (Billions of dollars)

Real GDP refers to the inflationary adjusted GDP. Real GDP refers to the market value of all the…

Use the orange line (square symbol) to plot a 45-degree line on this graph. Then use the blue points (circle symbols) to plot the aggregate expenditure line for this economy. Also, use the black point (plus symbol) to indicate the equilibrium output at this price level.

Use the orange line (square symbol) to plot a 45-degree line on this graph. Then use the blue points (circle symbols) to plot the aggregate expenditure line for this economy. Also, use the black point (plus symbol) to indicate the equilibrium output at this price level.

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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Question

6. Aggregate expenditure and income
Suppose the following table shows consumption (C), investment (I), government purchases (G), and net exports (NX) in a hypothetical economy
for various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.
Real GDP
I
G
NX
(Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars)
500
250
250
200
-150
600
325
250
200
-150
700
400
250
200
-150
800
475
250
200
-150
900
550
250
200
-150

1000
900
45-Degree Line
800
AE Line
700
Equilibrium Output
600
500
400
400
500
600
700
800
900
1000
REAL GDP (Billions of dollars)
AGGREGATE EXPENDITURES (Billions of dollars)

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