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Question 154

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Use the information below to answer the following questions.
Fact 27.5.2
The economy of Tinseltown has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y.
-Refer to Fact 27.5.2. What is the equation for the aggregate expenditure curve for this economy?


A) AE = 35 + 0.5Y
B) AE = 55 + 0.7Y
C) AE = 55 + 0.9Y
D) AE = 45 - 0.5Y
E) AE = 55 + 0.5Y

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