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Identifying the changes in the aggregate expenditure line and equilibrium national income for the given events.

Each of the following headlines describes an event that will have an effect on desired aggregate expenditure Illustrate what will be the effect on equilibrium national income? In each case, describe how the event would be illustrated in the 45° line diagram.

a. "Minister takes an axe to the armed forces."

b. "Russia agrees to huy more Canadian wheat.

c. "High-tech firms to cut capital outlays."

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921981

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