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The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero. Figure 10.4

The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero.

Figure 10.4

In the figure:

C: Consumption

I1and I2: Investment

G: Government Spending

X: Net Exports

image text in transcribed
45 Line 800 O+ +3+* E3 600 Aggregate Expenditures (dollars) Oth+G+X 400-+ E1 200-+ O 200 400 600 800 Real GDP (dollars)

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