Figure 13-5 -Refer to Figure 13-5. Let Y = Real GDP, AE

question 83

Multiple Choice

Figure 13-5
-Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment. Consider a simple economy where AE = C + I_P, I_P is autonomous
Jand the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of consumption when real GDP is $6,000 billion?

• A) $1,000 billion
• B) $2,500 billion
• C) $4,500 billion
• D) $5,500 billion

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Definitions:

Psychoanalytic Perspective

A framework in psychology which posits that human behavior is influenced by unconscious motives and conflicts.

Fixated

Describes a psychological state or condition where an individual becomes obsessively focused on an object, subject, or activity.

Oral Stage

A phase in Freud's psychosexual development theory occurring from birth to about 18 months, where an infant's pleasure centers on the mouth.

Defense Mechanisms

Unconscious psychological strategies brought into play by the mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.