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Use an aggregate expenditure diagram to show and briefly explain the effects of each of the...

Use an aggregate expenditure diagram to show and briefly explain the effects of each of the following changes. In each case, be sure to label the initial equilibrium and new equilibrium including equilibrium GDP.

Question 1: An increase in autonomous consumption spending due to optimism on the part of consumers. (2pts)


Question 2: Higher economic growth in other countries relative to the U.S. economy (3pts)

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