Table 27.2.1

-Table 27.2.1 gives the aggregate expenditure schedule. Equilibrium expenditure is equal to
A)$4 trillion.
B)$3 trillion.
C)$5 trillion.
D)zero.
E)$2 trillion.

Question

Table 27.2.1
 
-Table 27.2.1 gives the aggregate expenditure schedule. Equilibrium expenditure is equal to
A)$4 trillion. 
B)$3 trillion. 
C)$5 trillion. 
D)zero. 
E)$2 trillion.

Quizplus · Accepted Answer

Equilibrium expenditure is the level of expenditure at which the aggregate expenditure line intersects the 45-degree line. In Table 27.2.1, the aggregate expenditure line intersects the 45-degree line at $4 trillion. Therefore, equilibrium expenditure is $4 trillion.

Table 27.2.1 -Table 27.2.1 Gives the Aggregate Expenditure Schedule. Equilibrium Expenditure Is