5. Expenditure Gaps

On the graph, shift the PE line to show the change in the planned expenditure line necessary to close the income gap.

800 45-degree line O 700 REAL EXPENDITURE (Billions of dollars) PE 600 PE 500 400 300 200 100 Full-Employment Income 0 0 100 200 300 400 500 600 700 800 INCOME (Billions of dollars)