Use the figure below to answer the following questions.

Figure 27.2.3
There are no taxes in this economy.
-In Figure 27.2.3, equilibrium expenditure is
A)$10 billion.
B)$100 billion.
C)$150 billion.
D)$347 billion.
E)$375 billion.

Question

Use the figure below to answer the following questions.
  
Figure 27.2.3
There are no taxes in this economy.
-In Figure 27.2.3, equilibrium expenditure is
A)$10 billion. 
B)$100 billion. 
C)$150 billion. 
D)$347 billion. 
E)$375 billion.

Quizplus · Accepted Answer

Equilibrium expenditure is the point where the aggregate expenditure line intersects the 45-degree line. In Figure 27.2.3, this occurs at an output level of $375 billion.

Use the Figure Below to Answer the Following Questions