Refer to the information provided in Figure 9.3 below to answer the questions that follow. Figure 9.3
-Refer to Figure 9.3. If autonomous planned expenditure increases by $________ billion, equilibrium aggregate output increases to $750 billion.

Question

Refer to the information provided in Figure 9.3 below to answer the questions that follow.  Figure 9.3
-Refer to Figure 9.3. If autonomous planned expenditure increases by $________ billion, equilibrium aggregate output increases to $750 billion.

Quizplus · Accepted Answer

An increase in autonomous planned expenditure leads to a multiplier effect on the equilibrium aggregate output. Given that the output increases to $750 billion, the correct increase in autonomous planned expenditure must align with the multiplier effect in the economy, which in this case is represented by option C, $100 billion. This option correctly reflects the necessary increase to achieve the specified output level, considering the multiplier's impact on aggregate demand and output.

Refer to the Information Provided in Figure 9