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The following graph shows three total expenditure lines for an economy at three different price levels. AE120 corresponds to the price level of 120; AE100
The following graph shows three total expenditure lines for an economy at three different price levels. AE120 corresponds to the price level of 120; AE100 corresponds to the price level of 100; AE140 corresponds to the price level of 140. The black line (which starts in the bottom left corner) is a 45-degree line illustrating the set of points for which real GDP and total expenditure are equal
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
