Question: 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

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.

Govement Net IncomeConsumoi nvestment Purchases Exports $3,600 $3,220 $240 $120 $40 40 40 3,700 3,800 3,900 4,000 3,310 3,400240 3,490 240 3,580 240 120 120 120 120 40 40 240

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