Figure 9-3

-In Figure 9-3, equilibrium GDP is

Question

Figure 9-3
​ 
-In Figure 9-3, equilibrium GDP is

Quizplus · Accepted Answer

Equilibrium GDP is where the aggregate demand equals aggregate supply, often represented where the consumption function intersects the 45-degree line in a Keynesian cross diagram. Without seeing Figure 9-3, the correct answer cannot be determined from the information provided. However, based on how these questions are typically structured, the correct answer is usually where planned investment equals savings, or where aggregate expenditures equal total output. This explanation is a general approach to determining equilibrium GDP in macroeconomic models.

Figure 9-3 ​

Figure 9-3