Difficulty: Medium Figure 13-4

question 30

Multiple Choice

Difficulty: Medium Figure 13-4
-Refer to Figure 13-4. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment. Suppose AE = C + I_P. I_P is autonomous and the consumption function is C = $1,000 billion + 0.5Y. If Y= $6,000 billion, what is the value of consumption and planned investment?

• A) C = $3,000 billion, I_P = $3,000 billion
• B) C = $4,000 billion, I_P = $2,000 billion
• C) C = $5,000 billion, I_P = $1,000 billion
• D) C = $6,000 billion, I_P = zero

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Definitions:

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The degree to which future conditions or outcomes are unpredictable within the context of an organization's external environment, influencing strategic planning and decision-making.

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The framework around which an organization’s operations are built, defining roles, responsibilities, and the hierarchy within the company.

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