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Refer to the Diagram for a Private Closed Economy

Question 82

Multiple Choice

Refer to the diagram for a private closed economy. At the $400 level of GDP, A) aggregate expenditures exceed GDP, with the result that GDP will rise. B) consumption is $350 and planned investment is zero, so aggregate expenditures are $350. C) consumption is $300 and planned investment is $50, so aggregate expenditures are $350. D) consumption is $300 and actual investment is $100, so aggregate expenditures are $400. Refer to the diagram for a private closed economy. At the $400 level of GDP,


A) aggregate expenditures exceed GDP, with the result that GDP will rise.
B) consumption is $350 and planned investment is zero, so aggregate expenditures are $350.
C) consumption is $300 and planned investment is $50, so aggregate expenditures are $350.
D) consumption is $300 and actual investment is $100, so aggregate expenditures are $400.

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