\(\begin{array}{l}
\text { Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) }\
\begin{array}{ccccccccc}
\hline \begin{array}{c}
\text { Real } \
\text { GDP }
\end{array} & \begin{array}{c}
\text { Net } \
\text { taxes }
\end{array} & \begin{array}{c}
\text { Disposable } \
\text { income } \
(Y)
\end{array} & \begin{array}{c}
\text { Consumption } \
(N T)
\end{array} & \begin{array}{c}
\text { Saving } \
(Y-N T)
\end{array} & \begin{array}{c}
\text { Planned } \
\text { investment } \
(S)
\end{array} & \begin{array}{c}
\text { Net } \
\text { exports } \
(N X)
\end{array} & \begin{array}{c}
\text { Government } \
\text { purchases } \
(G)
\end{array} & \begin{array}{c}
\text { Planned } \
\text { aggregate } \
\text { expenditure } \
(C+I+N X+G)
\end{array} \
\hline 3.0 & 0.9 & 2.1 & 2.0 & 0.1 & 0.5 & -0.2 & 0.9 & 3.2 \
3.6 & 0.9 & 2.7 & 2.4 & 0.3 & 0.5 & -0.2 & 0.9 & 3.5 \
4.2 & 0.9 & 3.3 & 2.8 & 0.5 & 0.5 & -0.2 & 0.9 & 4.0 \
4.8 & 0.9 & 3.9 & 3.2 & 0.7 & 0.5 & -0.2 & 0.9 & 4.4 \
5.4 & 0.9 & 4.5 & 3.6 & 0.9 & 0.5 & -0.2 & 0.9 & 4.8 \
\hline
\end{array}
\end{array}\)
-Refer to the table in the exhibit.What is the equilibrium level of income?
A) where real GDP = nominal GDP
B) where real GDP = total planned expenditures
C) where disposable income = total planned expenditures
D) where government spending equals taxation

Question

\(\begin{array}{l}
\text { Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) }\
\begin{array}{ccccccccc}
\hline \begin{array}{c}
\text { Real } \
\text { GDP }
\end{array} & \begin{array}{c}
\text { Net } \
\text { taxes }
\end{array} & \begin{array}{c}
\text { Disposable } \
\text { income } \
(Y)
\end{array} & \begin{array}{c}
\text { Consumption } \
(N T)
\end{array} & \begin{array}{c}
\text { Saving } \
(Y-N T)
\end{array} & \begin{array}{c}
\text { Planned } \
\text { investment } \
(S)
\end{array} & \begin{array}{c}
\text { Net } \
\text { exports } \
(N X)
\end{array} & \begin{array}{c}
\text { Government } \
\text { purchases } \
(G)
\end{array} & \begin{array}{c}
\text { Planned } \
\text { aggregate } \
\text { expenditure } \
(C+I+N X+G)
\end{array} \
\hline 3.0 & 0.9 & 2.1 & 2.0 & 0.1 & 0.5 & -0.2 & 0.9 & 3.2 \
3.6 & 0.9 & 2.7 & 2.4 & 0.3 & 0.5 & -0.2 & 0.9 & 3.5 \
4.2 & 0.9 & 3.3 & 2.8 & 0.5 & 0.5 & -0.2 & 0.9 & 4.0 \
4.8 & 0.9 & 3.9 & 3.2 & 0.7 & 0.5 & -0.2 & 0.9 & 4.4 \
5.4 & 0.9 & 4.5 & 3.6 & 0.9 & 0.5 & -0.2 & 0.9 & 4.8 \
\hline
\end{array}
\end{array}\)
-Refer to the table in the exhibit.What is the equilibrium level of income?  
A) where real GDP = nominal GDP 
B) where real GDP = total planned expenditures 
C) where disposable income = total planned expenditures 
D) where government spending equals taxation

Quizplus · Accepted Answer

Equilibrium in the economy occurs where total planned expenditure (C + I + NX + G) equals real GDP. In this table, at an output level of 4.4 trillion dollars, the planned aggregate expenditure is 4.4 trillion dollars. Therefore, the equilibrium level of income is 4.4 trillion dollars.

-Refer to the Table in the Exhibit