Use the figure below to answer the following questions.

Figure 27.2.3
There are no taxes in this economy.
-In Figure 27.2.3, at the equilibrium level of real GDP, induced expenditure is

Question

Use the figure below to answer the following questions.
  
Figure 27.2.3
There are no taxes in this economy.
-In Figure 27.2.3, at the equilibrium level of real GDP, induced expenditure is

Quizplus · Accepted Answer

At the equilibrium level of GDP, the intersection point of the 45-degree line and the total expenditure line represents where output equals total spending. In this case, the equilibrium level is where the total expenditure line crosses the 45-degree line at point E, which is around the $225 billion mark. Therefore, induced expenditure at the equilibrium level of GDP is $225 billion.

Use the Figure Below to Answer the Following Questions