-In the above table, there are no taxes and no imports or exports. The equilibrium level of expenditure for this economy is
A) $5,000.
B) any level because investment always equals government expenditures.
C) $3,000.
D) no level because consumption expenditure is always less than real GDP.

Question

-In the above table, there are no taxes and no imports or exports. The equilibrium level of expenditure for this economy is
A) $5,000. 
B) any level because investment always equals government expenditures. 
C) $3,000. 
D) no level because consumption expenditure is always less than real GDP.

Quizplus · Accepted Answer

In a closed economy with no taxes and no imports or exports, the equilibrium level of expenditure is determined where aggregate expenditure equals real GDP. The given choice $5,000 likely represents this equilibrium point.

-In the Above Table, There Are No Taxes and No