Refer to Table 23-1. Using the table above, compute aggregate expenditure and identify the macroeconomic equilibrium

What will be an ideal response?


The macroeconomic equilibrium is determined where aggregate expenditure = real GDP. The value for aggregate expenditure (C + I + G + NX) for each level of real GDP is given in the table below. The value where real GDP equals aggregate expenditure is $5,000, and this is equilibrium.

Real GDP Aggregate Expenditures
$4,000 $4,200
4,500 4,600
5,000 5,000
5,500 5,400

Economics

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What will be an ideal response?

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Economics