Macroeconomics 13th Edition by William Baumol ,Alan Blinder

Exercise 14

From the following data, construct an expenditure schedule on a piece of graph paper. Then use the income-expenditure (45° line) diagram to determine the equilibrium level of GDP.

Now suppose investment spending rises to $260, and the price level is fixed. By how much will equilibrium GDP increase Derive the answer both numerically and graphically.