Difficulty: Medium Figure 13-4

question 162

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, and I_P is autonomous. At a real GDP of $5,000 billion,

• A) planned investment is greater than actual investment.
• B) planned investment equals actual investment.
• C) planned investment is less than actual investment.
• D) there will be no unplanned investment.

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Common Law

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Tort Liability

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The failure to exercise a level of care that a reasonably prudent person would in similar circumstances, potentially causing harm or damage.

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