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private closed economy::
To add the investment decisions of businesses to the consumption plans of households (consumption schedule), we need to construct an investment schedule showing planned investment at each possible level of GDP.
planned investment::
assume that this ^^planned investment is independent of the level of current disposable income or real output.^^
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aggregate expenditures schedule::
We are working with planned investment—see the data in column 5 . These data show the amounts firms plan or intend to invest, not the amounts they actually will invest if there are unplanned changes in inventories.
Equilibrium GDP::
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Prosperity Abroad
Exchange Rates
If the dollar is depreciated relative to other currencies
Appreciation of the dollar would have opposite effects on net exports and equilibrium GDP
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