Question: The aggregate expenditure function in the simple macro model of this chapter is written as AE Upper C Subscript a Baseline plus Upper I Subscript

The aggregate expenditure function in the simple macro model of this chapter is written as AE Upper C Subscript a Baseline plus Upper I Subscript a Baseline plus Upper G Subscript a Baseline plus left parenthesis Upper X Subscript a Baseline minus IM Subscript a Baseline right parenthesis , and is graphed with desired aggregate expenditure on the vertical axis and expected national income on the horizontal axis

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