Question: Suppose Line 1 is the consumption function, Line 2 is consumption plus investment expenditure, Line 3 is consumption plus investment expenditure plus government expenditure, and
Suppose Line 1 is the consumption function, Line 2 is consumption plus investment expenditure, Line 3 is consumption plus investment expenditure plus government expenditure, and Line 4 is consumption plus investment plus government expenditure plus export expenditure minus import expenditure. In this oversimplified graph of the aggregate expenditure model, which line would represent the total aggregate expenditure? Responses line 1 line 1 line 4 line 4 line 2 line 2 line 3
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
