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17. The graph below (Figure1) called the 450 line diagram which is used to illustratemacroeconomic equilibrium. Briefly describe the features of the 450 line and the themacroeconomic condition characterizing the economy at points A, B, C and D. Assume Pepsiis the only good produced in the hypothetical economy that the diagram represents.Figure 118. Briefly discuss the changes shown in Figure 2. List one factor that can cause the shift in eachdiagram and briefly explain the transmission mechanism.Realaggregateexpenditure,AETAE2Increase ininventories45-Y2Real GDP,Figure 2
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