FIGURE 26-1 The Aggregate Consumption Function and Planned Aggregate Spending

The lower line, CF, is the aggregate consumption function constructed from the data in Table 26-1. The upper line, AE_Planned, is the planned aggregate spending line, also constructed from the data in Table 26-1. It is equivalent to the aggregate consumption function shifted up by $500 billion, the amount of planned investment spending, I_Planned.