Question: 1. 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

1. 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.

Income Consumption InvestmentGovernment 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

Now suppose investment spending rises to $260, and the price level is fixed. By how much will equilibrium GDP increase? Derive the answer both numerically and graphically.

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