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The Figure Given Below Represents the Macroeconomic Equilibrium in the Aggregate

Question 131

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The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero.
Figure 10.4
The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero. Figure 10.4 In the figure: C: Consumption I<sub>1</sub> and I<sub>2</sub>: Investment G: Government Spending X: Exports -Refer to Figure 10.4. If autonomous government expenditures increase by $250 billion, equilibrium real GDP will: A) rise by $250 billion. B) fall by 300 billion C) rise by $500 billion. D) rise by $75 billion. E) rise by $100 billion. In the figure:
C: Consumption
I1 and I2: Investment
G: Government Spending
X: Exports
-Refer to Figure 10.4. If autonomous government expenditures increase by $250 billion, equilibrium real GDP will:


A) rise by $250 billion.
B) fall by 300 billion
C) rise by $500 billion.
D) rise by $75 billion.
E) rise by $100 billion.

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