Download Document

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

page
1
page
2
page
3
page
4
page
5
page
6
page
7
page
8
page
9
Document related concepts
no text concepts found
Transcript 
Fifth Edition
Economics
A Contemporary Introduction
William A. McEachern
Aggregate Expenditure
and Aggregate Demand
1
Aggregate expenditure
(trillions of dollars)
Exhibit 2: Deriving the Aggregate Output
Demanded for a Given Price Level
C + I + G + (X – M)
d
9.0
8.8
c
e
8.0
b
7.2
7.0
a
45º
0
Aggregate Expenditure and
Aggregate Demand
7.0
8.0
9.0
Real GDP
(trillions of dollars)
2
Aggregate expenditure (trillions of dollars)
Exhibit 3: Effect of an Increase in
Autonomous Investment on
Real GDP Demanded
e'
8.5
C + I' + G + (X – M)
C + I + G + (X – M)
f
c
g
d
a
8.1
b
8.0
e
0.1
45º
0
Aggregate Expenditure and
Aggregate Demand
8.0 8.1
8.5
Real GDP
(trillions of dollars)
3
Aggregate expenditure (trillions of dollars)
Exhibit 4a: The Income-Expenditure
Approach and the Aggregate
Demand Curve
AE" (P = 120)
e"
AE (P = 130)
AE' (P = 140)
e
e'
45º
0
Aggregate Expenditure and
Aggregate Demand
7.5
8.0
8.5
Real GDP (trillions of dollars)
4
Exhibit 4b: The Income-Expenditure
Approach and the Aggregate
Demand Curve
e'
Price level
140
e
130
e"
120
AD
0
Aggregate Expenditure and
Aggregate Demand
7.5
8.0
8.5
Real GDP (trillions of dollars)
5
Aggregate expenditure (trillions of dollars)
Exhibit 5a: A Shift in the Aggregate
Expenditure Line That Shifts
the Aggregate Demand Curve
C + I' + G + (X – M)
C + I + G + (X – M)
e'
0.1
e
45º
0
Aggregate Expenditure and
Aggregate Demand
8.0
8.5
Real GDP (trillions of dollars)
6
Price level
Exhibit 5b: A Shift in the Aggregate
Expenditure Line That Shifts the
Aggregate Demand Curve
130
AD'
AD
0
Aggregate Expenditure and
Aggregate Demand
8.0
8.5
Real GDP (trillions of dollars)
7
Net exports
(trillions of dollars)
(a) Variable net-export function
X–M
0
3.0
4.0
5.0
6.0
7.0
8.0
Real GDP
(trillions
of dollars)
C+I+G
C + I + G + (X – M)
0
Aggregate Expenditure and
Aggregate Demand
9.0 10.0
(b) Aggregate expenditure lines
Aggregate expenditure
(trillions of dollars)
Exhibit 6:
Net Exports
and the
Aggregate
Expenditure
Line
3.0
4.0
5.0
6.0
7.0
8.0
9.0 10.0
Real GDP
(trillions of dollars)
8
Aggregate expenditure (trillions of dollars)
Exhibit 7: Effect of a Shift
in Autonomous Sending on
Real GDP Demanded
e'
C + I' + G + (X – M)
C + I + G + (X – M)
e
45º
0
Aggregate Expenditure and
Aggregate Demand
8.0 8.333
Real GDP
(trillions of dollars)
9
Related documents