In an economy with no government and no foreign sector automous consumer spending is 250 billion planned investment spending is 350 billion and the marginal propensity to consume is 23. Plot the aggre?

In this economy, autonomous consumer spending is $250 billion and planned investment spending is $350 billion, giving a total planned expenditure of $600 billion. The marginal propensity to consume (MPC) of 0.23 indicates that for every additional dollar of income, consumption increases by 23 cents. To plot the aggregate expenditure (AE) curve, you would start with the intercept at $600 billion and slope upward with a gradient of 0.23, representing the relationship between income and consumption. The AE curve will intersect the 45-degree line where total output equals total expenditure, indicating equilibrium in the economy.