IS Curve Exogenous Variables and Parameters
Table 1
-Given the values in the table above,consumption is ________ when equilibrium output is 15.
A)12.3
B)11.86
C)12.05
D)11.55
E)none of the above

Question

IS Curve Exogenous Variables and Parameters
Table 1 
-Given the values in the table above,consumption is ________ when equilibrium output is 15.
A)12.3 
B)11.86 
C)12.05 
D)11.55 
E)none of the above

Quizplus · Accepted Answer

The equilibrium output is where planned spending equals actual output. Given the table values, consumption at equilibrium output of 15 is calculated to be 11.86.