Use the Following to Answer Questions

question 76

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 2
-(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment. Consider a simple economy where AE = C + I_P, and I_P is autonomous. What is the value of AE when Y = $12,000 billion?

• A) $2,000 billion
• B) $8,000 billion
• C) $11,000 billion
• D) $12,000 billion

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Definitions:

Purchases Of Merchandise

Transactions involving the acquisition of goods for resale in the ordinary course of business, typically in a retail or wholesale setting.

Future Economic Benefit

The potential to contribute directly or indirectly to the flow of cash and cash equivalents to an entity.

Common Characteristic

A property or attribute that is shared among all members of a category.

Asset

An economic resource owned or controlled by an individual or corporation, expected to provide future benefit.