Refer to the below data. Equilibrium Y = (GDP) is: The letters Y, C, and, I are used to represent GDP, consumption, and, investment respectively.
A) $100.
B) $200.
C) $300.
D) $400.

Question

Refer to the below data. Equilibrium Y = (GDP) is: The letters Y, C, and, I are used to represent GDP, consumption, and, investment respectively. 
A) $100. 
B) $200. 
C) $300. 
D) $400.

Quizplus · Accepted Answer

Equilibrium GDP is the level of GDP where aggregate demand equals aggregate supply. In this case, the equilibrium GDP can be found by adding the consumption expenditure (C) and the investment expenditure (I) to determine the total aggregate demand (AD), which is equal to the total production (GDP) or aggregate supply (AS).

AD = C + I = $200 + $100 = $300

AS = GDP = $300

Therefore, the equilibrium Y or GDP is $300. Choice C is the best answer.

Refer to the Below Data