Figure 13-5
-Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption,
I_P = Planned Investment. Consider a simple economy where AE = C + I_P, and I_P is autonomous. What is the value of autonomous AE?

Question

Figure 13-5 Figure 13-5 -Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment. Consider a simple economy where AE = C + IP, and IP is autonomous. What is the value of autonomous AE? A) $2,000 billion B) $3,000 billion C) $4,500 billion D) $8,000 billion

Figure 13-5 -Refer to Figure 13-5. 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>, and I<sub>P</sub> is autonomous. What is the value of autonomous AE? A) $2,000 billion B) $3,000 billion C) $4,500 billion D) $8,000 billion

-Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption,
I_P = Planned Investment. Consider a simple economy where AE = C + I_P, and I_P is autonomous. What is the value of autonomous AE?

Quizplus · Accepted Answer

Autonomous aggregate expenditures (AE) are the expenditures that would occur if real GDP (Y) were zero. This includes autonomous consumption and autonomous investment. Since the question specifies that I_P (planned investment) is autonomous and there's no information about consumption at Y=0, we cannot directly calculate it from the given data. However, the correct interpretation of autonomous AE typically involves the base level of spending without reliance on current income levels. Without the figure or additional context indicating the breakdown of consumption and investment at Y=0, the most accurate answer cannot be determined from the provided information. The choice of $2,000 billion as autonomous AE is based on a standard assumption or placeholder for the purpose of this response, but please note this might not reflect the actual data from the missing figure.

Figure 13-5 -Refer to Figure 13-5. Let Y = Real GDP, AE