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aggregate spending; imports contract it.
• Exports act as an injection like investment. Exports are a part of aggregate
expenditures. Imports (goods produced outside the US) act as leakages from the income stream.
Imports are subtracted when measuring aggregate expenditures
C+Ig+Xn1 AE with positive Net
C+Ig+Xn2 AE with negative Net
You can see the effect
(both positive and
negative) of the
Key Graph, p. Rea...
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This note was uploaded on 01/30/2014 for the course ECON 259 taught by Professor Geanakopolis during the Fall '10 term at Purdue.
- Fall '10