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11. The figure below depicts the demand side of the economy using the aggregate expenditures and aggregate demand frameworks. Figure 1: Aggregate Expenditure and Aggregate

11. The figure below depicts the demand side of the economy using the aggregate expenditures and aggregate demand frameworks.

Figure 1: Aggregate Expenditure and Aggregate Demand

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\fThe economy depicted in Figure 1 is given by the following system of equations: . AE = C + 1 + G + NX . C = C+ MPC(Y - T) = 75 + .5*(Y - T) . I = 100 . G = 100 . T = 50 . NX = 0

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