$$\begin{array} { c c }
\begin{array} { c }
\text { Real GDP } \
\text { (billions of 2005 dollars) }
\end{array} & \begin{array} { c }
\text { Aggregate expenditure } \
\text { (billions of 2005 dollars) }
\end{array} \
\hline 10 & 10.50 \
11 & 11.25 \
12 & 12.00 \
13 & 12.75 \
14 & 13.50 \
15 & 14.25
\end{array}$$
-The above table gives real GDP and the aggregate expenditure schedule.Equilibrium real GDP is
A) $11 billion.
B) $12 billion.
C) $13 billion.
D) $14 billion.
E) $10 billion.

Question

$$\begin{array} { c c } 
\begin{array} { c } 
\text { Real GDP } \
\text { (billions of 2005 dollars) }
\end{array} & \begin{array} { c } 
\text { Aggregate expenditure } \
\text { (billions of 2005 dollars) }
\end{array} \
\hline 10 & 10.50 \
11 & 11.25 \
12 & 12.00 \
13 & 12.75 \
14 & 13.50 \
15 & 14.25
\end{array}$$
-The above table gives real GDP and the aggregate expenditure schedule.Equilibrium real GDP is
A) $11 billion.
B) $12 billion.
C) $13 billion.
D) $14 billion.
E) $10 billion.

Quizplus · Accepted Answer

Equilibrium real GDP occurs where aggregate expenditure equals real GDP. Looking at the table, we see that when real GDP is 12 billion, aggregate expenditure is also 12 billion. Therefore, B) $12 billion is the equilibrium real GDP.

-The Above Table Gives Real GDP and the Aggregate Expenditure