Consider the following information describing a closed economy with no government and where aggregate output is demand determined.All dollar figures are in billions. TABLE 21-3 Refer to Table 21-3.The equilibrium level of national income ($billions)will be

Question

Consider the following information describing a closed economy with no government and where aggregate output is demand determined.All dollar figures are in billions.  TABLE 21-3 Refer to Table 21-3.The equilibrium level of national income ($billions)will be

Quizplus · Accepted Answer

The equilibrium level of national income is where output equals expenditure. In this case, the total expenditure (C + I + G) at $3600 billion is equal to the total output of $3600 billion, which is the equilibrium level of national income. Therefore, the answer is D.

Consider the Following Information Describing a Closed Economy with No