Question: The following graph contains two aggregate expenditure functions. Consider a movement from point A to point B and a movement from point B to point

The following graph contains two aggregate expenditure functions. Consider a movement from point A to point B and a movement from point B to point C. Which movement shows a change in autonomous expenditure? Which movement shows a change in induced expenditure? Briefly explain your answers.

Real aggregate expenditure, AE AE2 AE, Real GDP, Y

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