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

question 148

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 planned investment when real GDP is $6,000 billion?

• A) $3,000 billion
• B) $1,500 billion
• C) $1,000 billion
• D) zero

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