Solved

Use the Following to Answer Questions

Question 6

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

Q1: Using the aggregate expenditures model, which of

Q2: Use the following to answer questions .<br>Exhibit:

Q3: Holding all else constant, a change in

Q4: The amount of consumption that would take

Q5: An increase in the price level, all

Q7: The consumption function shows<br>A) the amount of

Q8: Consider a simple economy that is made

Q9: An increase in wealth is likely to

Q10: In the aggregate expenditures model, in equilibrium,<br>A)

Q11: In the aggregate expenditures model, in equilibrium,<br>A)