-Refer to the above diagram for a private closed economy.The equilibrium level of GDP in this economy:
A) is $60 billion.
B) is $180 billion.
C) is between $60 and $180 billion.
D) cannot be determined from the information given.

Question

-Refer to the above diagram for a private closed economy.The equilibrium level of GDP in this economy:
A) is $60 billion. 
B) is $180 billion. 
C) is between $60 and $180 billion. 
D) cannot be determined from the information given.

Quizplus · Accepted Answer

The equilibrium level of GDP is where the aggregate expenditure (AE) line intersects the 45-degree line. In this case, the AE line intersects the 45-degree line at $180 billion.

-Refer to the Above Diagram for a Private Closed Economy