Use the graph below to explain the determination of equilibrium GDP by the aggregate expenditures-domestic output approach.At equilibrium C + Ig = Real GDP ($550 + $50 = $600).Why does the intersection of the aggregate expenditures schedule and the 45-degree line determine the equilibrium GDP? 
Definitions:
Moral Hazard
The situation in which one party can take risks because they know that they will not have to bear the full consequences of their actions.
Life Insurance
A contract between an insurer and a policyholder, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.
Auto Insurance
A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.
Federal Government
The national government of a federated state, which holds the authority to govern the issues that affect the entire country.
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