-Refer to Figure 6.4. The equilibrium Y in a private sector closed economy will be:
A) $100.
B) $500.
C) $600.
D) cannot be determined from the information given.

Name: -Refer to Figure 6.4. The equilibrium Y in a private sector closed economy will be: A) $100. B) $500. C) $600. D) cannot be determined from the information given.
Brand: Quizplus
Rating: 5.0 (43 reviews)

Question

-Refer to Figure 6.4. The equilibrium Y in a private sector closed economy will be:
A) $100. 
B) $500. 
C) $600. 
D) cannot be determined from the information given.

Quizplus · Accepted Answer

The equilibrium Y is where the aggregate expenditure line (AE) intersects the 45-degree line. In this case, the AE line intersects the 45-degree line at $600.