Use the figure below to answer the following questions.
Figure 11.2.2
The economy depicted does not engage in international trade and has no government.Planned aggregate expenditure AE) is equal to the sum of consumption expenditure C) and investment I).
-Refer to Figure 11.2.2.Equilibrium expenditure is
A)$100 billion.
B)$400 billion.
C)$200 billion.
D)$250 billion.
E)$300 billion.

Question

Use the figure below to answer the following questions.
  Figure 11.2.2
The economy depicted does not engage in international trade and has no government.Planned aggregate expenditure AE) is equal to the sum of consumption expenditure C) and investment I).
-Refer to Figure 11.2.2.Equilibrium expenditure is
A)$100 billion. 
B)$400 billion. 
C)$200 billion. 
D)$250 billion. 
E)$300 billion.

Quizplus · Accepted Answer

Equilibrium expenditure occurs where the planned aggregate expenditure line intersects the 45-degree line. In this figure, it occurs at $200 billion.

Use the Figure Below to Answer the Following Questions