The following question are based on the following consumption function for a hypothetical economy. Assume autonomous intended investment is $200 billion and there are no government expenditures, exports, or imports.

-The current equilibrium level of GDP is ________ billion.
A) $2,000
B) $2,100
C) $2,200
D) $2,300
E) $2,400

Question

The following question are based on the following consumption function for a hypothetical economy. Assume autonomous intended investment is $200 billion and there are no government expenditures, exports, or imports.
 
-The current equilibrium level of GDP is ________ billion.
A) $2,000 
B) $2,100 
C) $2,200 
D) $2,300 
E) $2,400

Quizplus · Accepted Answer

The current equilibrium level of GDP is $2,000 billion. This is because the aggregate expenditure (AE) curve intersects the aggregate supply (AS) curve at a point where the quantity of output supplied equals the quantity of output demanded.

The Following Question Are Based on the Following Consumption Function