Use the Figure Below to Answer the Following Questions

question 50

Multiple Choice

Use the figure below to answer the following questions.

Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government. Planned aggregate expenditure equals the sum of consumption expenditure (C) and investment (I) .
-Refer to Figure 27.3.1. If investment increases by $25 billion, then real GDP increases by

• A)$25 billion.
• B)$125 billion.
• C)$50 billion.
• D)$100 billion.
• E)$75 billion.

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