2. 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. Compare your answer with your answer to the previous question.

Income Consumption Investment Government Purchases Net Exports

$3,600 $3,280 $180 $120 $40 3,700 3,340 210 120 40 3,800 3,400 240 120 40 3,900 3,460 270 120 40 4,000 3,520 300 120 40 3. Suppose that investment spending is always $250, government purchases are $100, net exports are always $50, and consumer spending depends on the price level in the following way:

Price Level Consumer Spending 90 $740 95 720 100 700 105 680 110 660 On a piece of graph paper, use these data to construct an aggregate demand curve. Why do you think this example supposes that consumption declines as the price level rises?