Multiple Choice
Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6
-(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment, G = Government Purchases. Further, IP and G are autonomous. What is the equation of the aggregate expenditures curve? All figures in billions of dollars.
A) AE = G + IP
B) AE = 800 + G + IP
C) AE = 800 + G + IP + 0.5Y
D) AE = 800 + 0.5Y
Correct Answer:

Verified
Correct Answer:
Verified
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