The Figure Given Below Represents the Macroeconomic Equilibrium in the Aggregate

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
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.

Correct Answer:

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