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If autonomous expenditure is 200 and current output equals 600, the output gap is Planned Aggregate Expenditure, PAE 600 400 200 400 O 200 O-400
If autonomous expenditure is 200 and current output equals 600, the output gap is Planned Aggregate Expenditure, PAE 600 400 200 400 O 200 O-400 O-200 400 800 PAE = 600+ 0.5Y PAE 400+ 0.5Y PAE 200+ 0.5Y 1,200 Output, Y
If autonomous expenditure is 200 and current output equals 600, the output gap is Planned Aggregate Expenditure, PAE 600 400 200 000 400 200 O-400 -200 400 800 1,200 Output, Y PAE= 600+0.5Y PAE= 400+ 0.5Y PAE 200+ 0.5Y
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Principles Of Macroeconomics
Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster
13th Global Edition
1292303824, 978-1292303826
