Figure 10.2

-Refer to Figure 10.2..Assume the economy is initially at equilibrium at potential GDP of $250 billion.If the MPC = 0.50 and the difference between AE₁ and AE₂ represents a $75 billion decrease in planned investment spending,real GDP at Y₂ will be equal to

Question

Figure 10.2
Figure 10.2 -Refer to Figure 10.2..Assume the economy is initially at equilibrium at potential GDP of $250 billion.If the MPC = 0.50 and the difference between AE₁ and AE₂ represents a $75 billion decrease in planned investment spending,real GDP at Y₂ will be equal to A) $100 billion. B) $125 billion. C) $175 billion. D) $212.5 billion.

Figure 10.2 -Refer to Figure 10.2..Assume the economy is initially at equilibrium at potential GDP of $250 billion.If the MPC = 0.50 and the difference between AE₁ and AE₂ represents a $75 billion decrease in planned investment spending,real GDP at Y₂ will be equal to A) $100 billion. B) $125 billion. C) $175 billion. D) $212.5 billion.

-Refer to Figure 10.2..Assume the economy is initially at equilibrium at potential GDP of $250 billion.If the MPC = 0.50 and the difference between AE₁ and AE₂ represents a $75 billion decrease in planned investment spending,real GDP at Y₂ will be equal to

Quizplus · Accepted Answer

The Answer is A

Figure 10.2 -Refer to Figure 10.2..Assume the Economy Is Initially at Equilibrium