Use the Following to Answer Questions

question 78

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, I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. What is the equation of the aggregate expenditures curve? All figures in billions of dollars.

• A) AE = G + I_P
• B) AE = 800 + G + I_P
• C) AE = 800 + G + I_P + 0.5Y
• D) AE = 800 + 0.5Y

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