Price Level: Equality Between Income and Expenditure

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Price Level: Equality Between Income and Expenditure

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Price

Level

P1 AS

AD1
AD2
0
Qu Qf Real output, GDP

Equality between Income and Expenditure

Expenditure 45
Expenditure (C+I+G+X)

0 Y1 Ye Income (Y)

Inflationary Gap

1
Expenditure Ex = Y
Expenditure (C+I+G+X-M)

0 Yf Ye Income (Y)

Expenditure Ex = Y
Expenditure (C+I+G+X-M)

0 Ye Yf Income (Y)

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