Question: From the following data construct an expenditure schedule on a

From the following data, construct an expenditure schedule on a piece of graph paper. Then use the income-expenditure (45° line) diagram to determine the equilibrium level of GDP.


Now suppose investment spending rises to $260, and the price level is fixed. By how much wills equilibrium GDP increase? Derive the answer both numerically andgraphically.
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  • CreatedSeptember 01, 2012
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