Table 9.2

-Refer to Table 9.2, which shows the values of different components of aggregate expenditure of an economy. The equilibrium level of gross domestic product (GDP) is _____
A) $5.0 trillion.
B) $5.5 trillion.
C) $6.0 trillion.
D) $6.5 trillion.
E) $7.0 trillion.

Question

Table 9.2
 
-Refer to Table 9.2, which shows the values of different components of aggregate expenditure of an economy. The equilibrium level of gross domestic product (GDP) is _____
A) $5.0 trillion. 
B) $5.5 trillion. 
C) $6.0 trillion. 
D) $6.5 trillion. 
E) $7.0 trillion.

Quizplus · Accepted Answer

The equilibrium level of GDP occurs where AE equals GDP. At a price level of 100, AE is equal to $6.0 trillion, which is the same as the level of GDP. Therefore, the equilibrium level of GDP is $6.0 trillion.

Table 9.2 -Refer to Table 9.2, Which Shows the Values of Different