Diamond Net Black
Can u plz give me the rough sketch?
The government of Morke has hired you as an economist to determine the equilibrium level of real GDP. Suppose the economy of Morke conforms to the Keynesian expenditure model. The black line in the graph below represents the 45-degree line. The green line (triangle symbols) is the C + I line.
Suppose that the sum of government purchases and net exports equals $100 billion at all levels of real GDP.
Use the purple line (diamond symbols) to indicate the G + (X - M) line on the graph. Then, use the blue line (circle symbols) to indicate the aggregate expenditures (AE) curve on the graph. Finally, place a tan point (dash symbol) on the AE curve to indicate the equilibrium level of real GDP.
If you want us to do the homework for you, at least you put the graph up for us to read.
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