Figure 13-6
-Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption,
I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. The equilibrium level of real GDP is

Question

Figure 13-6 Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. The equilibrium level of real GDP is A) $800 billion. B) $1,000 billion. C) $1,600 billion. D) $3,200 billion.

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. The equilibrium level of real GDP is A) $800 billion. B) $1,000 billion. C) $1,600 billion. D) $3,200 billion.

-Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption,
I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. The equilibrium level of real GDP is

Quizplus · Accepted Answer

The equilibrium level of real GDP occurs where Aggregate Expenditures (AE) equals real GDP (Y). In this context, AE is the sum of Consumption (C), Planned Investment (I_P), and Government Purchases (G). Given that I_P and G are autonomous, the equilibrium is determined by the level where AE equals Y, which is $1,600 billion.

Figure 13-6 -Refer to Figure 13-6. Let Y = Real GDP, AE