You are given the following information about the Australian economy. Consumption function of C = 15 + 0.7Y, investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y. What is the equation for the aggregate expenditure curve for this economy?
A)AE = 55 + 0.9Y
B)AE = 55 + 0.7Y
C)AE = 55 + 0.5Y
D)AE = 45 - 0.5Y

Question

Quizplus · Accepted Answer

The Answer of You are given the following information about the Australian economy. Consumption function of C = 15 + 0.7Y, investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y. What is the equation for the aggregate expenditure curve for this economy?
A)AE = 55 + 0.9Y
B)AE = 55 + 0.7Y
C)AE = 55 + 0.5Y
D)AE = 45 - 0.5Y

You Are Given the Following Information About the Australian Economy