Exhibit 9-1 GDP and consumption data
GDP
Consumption
Aggregate Expenditures
Unplanned inventory
$0
$0.5
1
1.0
2
1.5
3
2.0
4
2.5
5
3.0
6
3.5
7
4.0
8
4.5
As shown in Exhibit 9-1, if investment is $0.5 trillion, government spending is $1 trillion, and net exports are ?$0.5 trillion, then equilibrium GDP is:
A. $2 trillion.
B. $3 trillion.
C. $4 trillion.
D. $5 trillion.
Answer: B
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