Exhibit 11-5
-In an economy characterized by the aggregate expenditure line in Exhibit 11-5,what would the equilibrium real GDP be equal to if autonomous government spending decreased by $100?
A)$400
B)$500
C)$600
D)$700
E)$800

Question

Exhibit 11-5 
-In an economy characterized by the aggregate expenditure line in Exhibit 11-5,what would the equilibrium real GDP be equal to if autonomous government spending decreased by $100?
A)$400 
B)$500 
C)$600 
D)$700 
E)$800

Quizplus · Accepted Answer

The aggregate expenditure line would shift down by $100, resulting in a new equilibrium real GDP of $400.

Exhibit 11-5 -In an Economy Characterized by the Aggregate Expenditure Line in Expenditure