Explain role of inventories in keeping actual expenditures

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Reference no: EM13213204

1. Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM curve, the I + G +EX curve, and the equilibrium level of real GDP. Illustrate the effect of an increase in the level of autonomous saving.

2. Explain the role of inventories in keeping actual expenditures equal to real GDP.

3. Who was John Maynard Keynes and what did he contribute to economics?

Reference no: EM13213204

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