Refer to the information provided in Figure 23.12 below to answer the question(s) that follow. Figure 23.12
-Refer to Figure 23.12. Suppose the economy's aggregate expenditure line is AE₁. A $10 million increase in planned investment causes aggregate equilibrium output to increase to

Question

Refer to the information provided in Figure 23.12 below to answer the question(s) that follow.

Figure 23.12
-Refer to Figure 23.12. Suppose the economy's aggregate expenditure line is AE₁. A $10 million increase in planned investment causes aggregate equilibrium output to increase to

Quizplus · Accepted Answer

According to the graph, a $10 million increase in planned investment shifts the aggregate expenditure line upward from AES1U1B1 to AES2U2B2. The new equilibrium output is where the new AE line intersects the 45-degree line, which is approximately $1,016.7 million.

Refer to the Information Provided in Figure 23