Solved

Use the Following to Answer Questions

Question 87

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 1 Use the following to answer questions . Exhibit: Aggregate Expenditures and Real GDP 1 -(Exhibit: Aggregate Expenditures and Real GDP 1) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I<sub>P</sub> = Planned Investment. Suppose AE = C + I<sub>P</sub>. I<sub>P</sub> is autonomous and the consumption function is C = $1,000 billion + 0.5Y. What is the amount of consumption when real GDP is $6,000 billion? A) 1,000 billion B) 2,000 billion C) 3,000 billion D) 4,000 billion
-(Exhibit: Aggregate Expenditures and Real GDP 1) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment. Suppose AE = C + IP. IP is autonomous and the consumption function is C = $1,000 billion + 0.5Y. What is the amount of consumption when real GDP is $6,000 billion?


A) 1,000 billion
B) 2,000 billion
C) 3,000 billion
D) 4,000 billion

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q82: Use the following to answer questions .
Exhibit:

Q83: Consider a simple economy that is made

Q84: Use the following to answer questions .
Exhibit:

Q85: Use the following to answer questions .
Exhibit:

Q86: Use the following to answer questions .
Exhibit:

Q88: Use the following to answer questions .
Exhibit:

Q89: Use the following to answer questions .
Exhibit:

Q90: Use the following to answer questions .
Exhibit:

Q91: If real GDP increases from $2,000 to

Q92: Use the following to answer questions .
Exhibit:

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents