As shown in Exhibit 2, this economy is in macro equilibrium at: Group of answer choices$2 trillion.$4 trillion.$6 trillion.$8 trillion. Exhibit 2 Aggregate expenditures function87Real6conяппрtionand investmentexpenditures(trilli ons ofdollars peryear)2145"0 1 2 3 4 5 6 7 8 9Real disposable income(trilli ons of dollars per year)4)3.

The model that includes Consumption and Investment is referred as the Aggregate Expenditures Model. Using this model, a framework is determined to derive equilibrium output of the economy. Based on circular flow model, the Gross domestic product is arise due to flow of income is equal to value of output.The following graph is used as follows: Hence, the correct answer is 6 trillion.

Answered: s shown in Exhibit 2, this economy is…

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s shown in Exhibit 2, this economy is in macro equilibrium at: Group of answer choices $2 trillion. $4 trillion. $6 trillion. $8 trillion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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