Figure 13-6
-Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. The equilibrium level of real GDP is

Question

Figure 13-6 Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. The equilibrium level of real GDP is A) $800 billion. B) $1,000 billion. C) $1,600 billion. D) $3,200 billion.

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. The equilibrium level of real GDP is A) $800 billion. B) $1,000 billion. C) $1,600 billion. D) $3,200 billion.

-Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. The equilibrium level of real GDP is

Quizplus · Accepted Answer

The equilibrium level of real GDP occurs where Aggregate Expenditures (AE) equals real GDP (Y). In the context of the question, this is where the sum of Consumption (C), Planned Investment (I_P), and Government Purchases (G) equals the real GDP. The correct equilibrium level is $1,600 billion.

Figure 13-6 -Refer to Figure 13-6. Let Y = Real GDP, AE