Figure 13-5 -Refer to Figure 13-5. Let Y = Real GDP, AE

Multiple Choice

Figure 13-5
-Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption,
I_P = Planned Investment. Consider a simple economy where AE = C + I_P, I_P is autonomous
And the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of consumption when real GDP is $6,000 billion?

A) $1,000 billion
B) $2,500 billion
C) $4,500 billion
D) $5,500 billion