Figure 13-5
-Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment. Consider a simple economy where AE = C + I_P, and I_P is autonomous. What is the value of AE when Y = $12,000 billion?

Question

Figure 13-5 Figure 13-5 -Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JIP = Planned Investment. Consider a simple economy where AE = C + IP, and IP is autonomous. What is the value of AE when Y = $12,000 billion? A) $2,000 billion B) $8,000 billion C) $11,000 billion D) $12,000 billion

Figure 13-5 -Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI<sub>P</sub> = Planned Investment. Consider a simple economy where AE = C + I<sub>P</sub>, and I<sub>P</sub> is autonomous. What is the value of AE when Y = $12,000 billion? A) $2,000 billion B) $8,000 billion C) $11,000 billion D) $12,000 billion

-Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment. Consider a simple economy where AE = C + I_P, and I_P is autonomous. What is the value of AE when Y = $12,000 billion?

Quizplus · Accepted Answer

In a simple economy, AE = C + I_P. If Y = $12,000 billion and AE is less than Y, it indicates that AE is $11,000 billion, as AE must be less than or equal to Y for equilibrium.

Figure 13-5 -Refer to Figure 13-5. Let Y = Real GDP, AE