If the economy is operating at aggregate expenditure AE2; Derive the consumption function assuming that planned investment is $20 billion, government expenditure is $30 billion and taxes are zero*

5 points

200+0.5Yd

50+0.5Yd

150+0.5Yd

80+0.5Yd

400 AE2 Planned aggregate expenditure, C + 1 + G AE 300 AEQ (billions of dollars) 200 150 100 50 450 0 200 300 400 Aggregate output (income), Y (billions of dollars)