If consumption is given by C = $10 billion + 0.5Y, and autonomous planned investment,
Jgovernment purchases, and net exports amount to $5 billion, then aggregate expenditures are
J$20 billion if Y = $10 billion.

Question

Quizplus · Accepted Answer

We can use the equation for aggregate expenditures to check:
AE = C + I + G + NX 
AE = ($10 billion + 0.5($10 billion)) + $5 billion 
AE = $15 billion + $5 billion 
AE = $20 billion

This matches the given information. Therefore, the statement is true.

If Consumption Is Given by C = $10 Billion