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Use the Graph Below to Explain the Determination of Equilibrium

question 10

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Use the graph below to explain the determination of equilibrium GDP by the aggregate expenditures-domestic output approach.At equilibrium C + Ig = Real GDP ($550 + $50 = $600).Why does the intersection of the aggregate expenditures schedule and the 45-degree line determine the equilibrium GDP? Use the graph below to explain the determination of equilibrium GDP by the aggregate expenditures-domestic output approach.At equilibrium C + Ig = Real GDP ($550 + $50 = $600).Why does the intersection of the aggregate expenditures schedule and the 45-degree line determine the equilibrium GDP?


Definitions:

Similar

Resembling without being identical; having qualities in common or a close resemblance.

Same

Identical; exactly alike or equal in some specified quality or characteristic.

Likeness

The state, quality, or fact of being similar or akin to something else.

Constant

A value that remains unchanged and is not affected by other parameters in a given situation.

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