Use the figure below to answer the following questions.

Figure 27.2.2
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 27.2.2. Equilibrium expenditure is
A)$100 billion.
B)$300 billion.
C)$250 billion.
D)$200 billion.
E)$400 billion.

Question

Use the figure below to answer the following questions.
  
Figure 27.2.2
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 27.2.2. Equilibrium expenditure is
A)$100 billion. 
B)$300 billion. 
C)$250 billion. 
D)$200 billion. 
E)$400 billion.

Quizplus · Accepted Answer

Equilibrium expenditure occurs where aggregate expenditure equals total output or GDP. In this context, it is given as $200 billion.

Use the Figure Below to Answer the Following Questions