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Income Aggregate Expenditures (C + I + G) $800 $1300 $1800 $2050 $2800 $2800 $3800 $3550...

Income Aggregate Expenditures (C + I + G)

$800 $1300

$1800 $2050

$2800 $2800

$3800 $3550

$4800 $4300

$5800 $5050

5. Line up this AE/AP graph above a production graph. Demonstrate with a dotted line that there is a recessionary gap where potential output is $4800.

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