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Exhibit 19-6 Keynesian aggregate expenditure model when the MPC is 2/3 A graph shows the Keynesian aggregate expenditures model. Real G D P in trillions
Exhibit 19-6 Keynesian aggregate expenditure model when the MPC is 2/3 A graph shows the Keynesian aggregate expenditures model. Real G D P in trillions of dollars per year is on the horizontal axis ranging from 0 to 12 with increments of 2. Real aggregate expenditures in trillions of dollars is on the vertical axis ranging from 0 to 12 with increments of 2. An upward sloping solid curve is at an angle of 45 degrees from (0, 0) and crosses through points (2,2), (5,5) (7, 7()and (9,9). Another upward sloping solid curve labeled A E originates at a point (0, 1.5) and crosses through point (5,5). Both curves intersect at a point (5, 5). Markings, 5 and 8 on the horizontal axis and 5 on the vertical axis are boxed. Marking 8 on the horizontal axis is labeled Full employment. The economy shown in Exhibit 19-6 has a recessionary gap of: Group of answer choices $3 trillion. $2 trillion. $1 trillion. $5 trillion
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