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Use the Following to Answer Questions

Question 86

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 2 Use the following to answer questions . Exhibit: Aggregate Expenditures and Real GDP 2 -(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I<sub>P</sub> = Planned Investment. Consider a simple economy where AE = C + I<sub>P</sub>, I<sub>P</sub> is autonomous and the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of planned investment when real GDP is $6,000 billion? A) $3,000 billion B) $1,500 billion C) $1,000 billion D) zero
-(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment. Consider a simple economy where AE = C + IP, IP is autonomous and the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of planned investment when real GDP is $6,000 billion?


A) $3,000 billion
B) $1,500 billion
C) $1,000 billion
D) zero

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