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Explain the Relationship Between the Aggregate Expenditures Model in Graph

Question 2

Essay

Explain the relationship between the aggregate expenditures model in graph (A) below and the aggregate demand model in graph (B) below.In other words, explain how points 1, 2, and 3 are related to points 1', 2', and 3'. Explain the relationship between the aggregate expenditures model in graph (A) below and the aggregate demand model in graph (B) below.In other words, explain how points 1, 2, and 3 are related to points 1', 2', and 3'.

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