Real GDP (dollars) 3,0004,0005,0006,0007,0008,000 Consumption expenditure (dollars) 2,5003,2504,0004,7505,5006,250 Investment (dollars) 500500500500500500 Government expenditure (dollars) 500500500500500500 -In the above table, there are no taxes and no imports or exports. The equilibrium level of expenditure for this economy is
A) $3,000. B) $5,000. C) any level because investment always equals government expenditures. D) no level because consumption expenditure is always less than real GDP.
Correct Answer:
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