The following table is for a particular country in which C is consumption expenditures,I g is gross investment expenditures,G is government expenditures,X is exports,and M is imports.All figures are in billions of dollars.Each question is independent of the other questions.

-Refer to the above table.If the aggregate supply schedule intersects the aggregate demand at price level 119 in this country,its equilibrium level of real GDP will be:
A) $37 billion.
B) $35 billion.
C) $26 billion.
D) $43 billion.

Question

The following table is for a particular country in which C is consumption expenditures,I g is gross investment expenditures,G is government expenditures,X is exports,and M is imports.All figures are in billions of dollars.Each question is independent of the other questions.
 
-Refer to the above table.If the aggregate supply schedule intersects the aggregate demand at price level 119 in this country,its equilibrium level of real GDP will be:
A) $37 billion. 
B) $35 billion. 
C) $26 billion. 
D) $43 billion.

Quizplus · Accepted Answer

The equilibrium level of real GDP occurs where the aggregate supply schedule intersects the aggregate demand at the given price level. If this intersection occurs at a price level of 119, the corresponding real GDP from the table is $37 billion.

The Following Table Is for a Particular Country in Which