Identifying the changes in the aggregate expenditure line and equilibrium national income for the given events.
Each of the following headlines describes an event that will have an effect on desired aggregate expenditure What will be the effect on equilibrium national income? In each case, illustrate how the event would be illustrated in the 45° line diagram.
A. "Finance minister pledges to cut income-tax rates."
B. "U.S. imposes import restrictions on Canadian lumber. "
C. "Asian slump means smaller market for B.C. lumber. "
D. "Weak dollar spurs exports from Ontario manu facturers. "