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The economy is depicted by the expenditures function as shown. Suppose that the government decided to decrease government spending by $2 trillion. 1.) Using the
The economy is depicted by the expenditures function as shown. Suppose that the government decided to decrease government spending by $2 trillion. 1.) Using the line drawing tool, draw the new expenditure line after the decrease in government spending. Properly label your line. 2.) Using the point drawing tool, show the new equilibrium level of real GDP and label it 'E,'. Carefully follow the instructions above, and only draw the required objects. C + 1+ Go + X The value of the autonomous spending multiplier is . (Enter your response as a whole number.) Real C, I, G, X ($ trillions) 6 8 10 12 14 16 18 20 22 24 26 28 Real GDP ($ trillions) (6,0)
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