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Difficulty: Medium Figure 13-4

Question 92

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Difficulty: Medium Figure 13-4 Difficulty: Medium Figure 13-4 -Refer to Figure 13-4. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI<sub>P</sub> = Planned Investment. Suppose AE = C + I<sub>P</sub>. I<sub>P</sub> is autonomous and the consumption function is C = $1,000 billion + 0.5Y. What is the amount of consumption when real GDP is $6,000 billion? A) 1,000 billion B) 2,000 billion C) 3,000 billion D) 4,000 billion
-Refer to Figure 13-4. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JIP = Planned Investment. Suppose AE = C + IP. IP is autonomous and the consumption function is C = $1,000 billion + 0.5Y. What is the amount of consumption when real GDP is $6,000 billion?


A) 1,000 billion
B) 2,000 billion
C) 3,000 billion
D) 4,000 billion

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