Use the figure below to answer the following questions. Figure 11.2.1 There are no exports or imports in this economy. -Refer to Figure 11.2.1.Equilibrium real GDP A)is decreasing. B)is equal to Y_b. C)is equal to Y_a. D)is equal to Y_c. E)can be any of Y_a, Y_b, or Y_cdepending on what is happening to inventories.

Question

Quizplus · Accepted Answer

In the absence of exports and imports, equilibrium real GDP is where the aggregate expenditure line (AE) intersects the 45-degree line (which represents real GDP). At this point, AE = Y, which is Y_b in the given figure.

Use the Figure Below to Answer the Following Questions