Question: We have the following information for a country. Consumption Function: C = 200 + 0.8(Y-T) Net Taxes: Planned Investment: T = 125 | = 100

We have the following information for a country. Consumption Function: C

We have the following information for a country. Consumption Function: C = 200 + 0.8(Y-T) Net Taxes: Planned Investment: T = 125 | = 100 Government Spending: G = 200 The graph of the consumption function is shown as C. 1.) Using the line drawing tool, draw the Aggregate Expenditure line. Label it AE. 2.) Using the line drawing tool, draw the Aggregate Expenditure line after net taxes increase by 125. Label it as AE2. Note: Carefully follow the instructions above and only draw the required objects. 800- Tax and Aggregate Expenditure 700- 600- 500- -400 C 300- 200- 100- 0- 0 100 200 300 400 500 Income/Output 600

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