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how to create the graph: X-axis: Real GDP Y-axis: Aggregate Expenditure (AE) Plot the initial AE curve with a slope of 0.8, passing through the
how to create the graph: X-axis: Real GDP Y-axis: Aggregate Expenditure (AE) Plot the initial AE curve with a slope of 0.8, passing through the equilibrium GDP point ($500 billion). Plot a new point on the AE curve corresponding to full employment GDP ($600 billion). Draw a vertical line connecting the initial equilibrium point and the new full employment point. Label the change in government expenditure on the vertical line. Label the equilibrium GDP and full employment GDP points on the x-axis
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