Figure 13-6
-Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption,
I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. What is the level of autonomous aggregate expenditures?

Question

Figure 13-6 Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. What is the level of autonomous aggregate expenditures? 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, I<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. What is the level of autonomous aggregate expenditures? 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,
I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. What is the level of autonomous aggregate expenditures?

Quizplus · Accepted Answer

Autonomous aggregate expenditures are those that do not depend on the level of income. In this case, I_P and G are autonomous, so the level of autonomous aggregate expenditures is $800 billion + $1,000 billion = $1,800 billion.

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