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, I_P is autonomous
Jand the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of equilibrium real GDP (Y*) ?

Question

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, I_P is autonomous
Jand the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of equilibrium real GDP (Y*) ?

Quizplus · Accepted Answer

The Answer of 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, I_P is autonomous Jand the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of equilibrium real GDP (Y*)? A) $2,000 billion B) $6,000 billion C) $7,500 billion D) $8,000 billion

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