\[\begin{array} { c c c c c c }
\begin{array} { c }
\text { Consumption } \
\text { Real GDP, } Y \
\text { (trillions of }
\end{array} & \begin{array} { c }
\text { Government } \
\text { (trillions of }
\end{array} & \begin{array} { c }
\text { Investment, I } \
\text { (trillions of }
\end{array} & \begin{array} { c }
\text { expenditure, } G \
\text { (trillions of }
\end{array} & \begin{array} { c }
\text { Exports, } X \
\text { (trillions of }
\end{array} & \begin{array} { c }
\text { Imports, } M \
\text { (trillions of }
\end{array} \
2005 \text { dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & 2005 \text { dollars) } \
\hline 0 & 1.00 & 2 & 1 & 1 & 0.50 \
1 & 1.75 & 2 & 1 & 1 & 0.75 \
2 & 2.50 & 2 & 1 & 1 & 1.00 \
3 & 3.25 & 2 & 1 & 1 & 1.25 \
4 & 4.00 & 2 & 1 & 1 & 1.50 \
5 & 4.75 & 2 & 1 & 1 & 1.75 \
6 & 5.50 & 2 & 1 & 1 & 2.00 \
7 & 6.25 & 2 & 1 & 1 & 2.25 \
8 & 7.00 & 2 & 1 & 1 & 2.50 \
9 & 7.75 & 2 & 1 & 1 & 2.75 \
10 & 8.50 & 2 & 1 & 1 & 3.00
\end{array}\]
-The table above gives data for the nation of Mosh.If we graphed these data, we would see that when GDP equals
A) $6 trillion, the AE curve is below the 45° line.
B) $10 trillion, the 45° line is above the AE curve.
C) $9 trillion, the AE curve intersects the 45° line.
D) $4 trillion, the AE curve intersects the 45° line.
E) $10 trillion, the AE curve intersects the 45° line.

Question

\[\begin{array} { c c c c c c } 
\begin{array} { c } 
\text { Consumption } \
\text { Real GDP, } Y \
\text { (trillions of }
\end{array} & \begin{array} { c } 
\text { Government } \
\text { (trillions of }
\end{array} & \begin{array} { c } 
\text { Investment, I } \
\text { (trillions of }
\end{array} & \begin{array} { c } 
\text { expenditure, } G \
\text { (trillions of }
\end{array} & \begin{array} { c } 
\text { Exports, } X \
\text { (trillions of }
\end{array} & \begin{array} { c } 
\text { Imports, } M \
\text { (trillions of }
\end{array} \
2005 \text { dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & 2005 \text { dollars) } \
\hline 0 & 1.00 & 2 & 1 & 1 & 0.50 \
1 & 1.75 & 2 & 1 & 1 & 0.75 \
2 & 2.50 & 2 & 1 & 1 & 1.00 \
3 & 3.25 & 2 & 1 & 1 & 1.25 \
4 & 4.00 & 2 & 1 & 1 & 1.50 \
5 & 4.75 & 2 & 1 & 1 & 1.75 \
6 & 5.50 & 2 & 1 & 1 & 2.00 \
7 & 6.25 & 2 & 1 & 1 & 2.25 \
8 & 7.00 & 2 & 1 & 1 & 2.50 \
9 & 7.75 & 2 & 1 & 1 & 2.75 \
10 & 8.50 & 2 & 1 & 1 & 3.00
\end{array}\]
-The table above gives data for the nation of Mosh.If we graphed these data, we would see that when GDP equals
A) $6 trillion, the AE curve is below the 45° line.
B) $10 trillion, the 45° line is above the AE curve.
C) $9 trillion, the AE curve intersects the 45° line.
D) $4 trillion, the AE curve intersects the 45° line.
E) $10 trillion, the AE curve intersects the 45° line.

Quizplus · Accepted Answer

At any point where GDP equals AE, it means that there is equilibrium in the economy. This is because AE (aggregate expenditure) is the total spending in the economy, which includes consumption, investment, government expenditure, and net exports. When GDP is equal to AE, it means that the total output produced in the economy is being spent, and there is no excess supply or demand in the economy. In this table, we can see that when GDP is $9 trillion, AE is also $9 trillion, which means that the economy is in equilibrium. At this point, the AE curve intersects the 45° line, which represents the level of GDP where GDP equals itself. Therefore, the correct answer is C.

-The Table Above Gives Data for the Nation of Mosh