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

question 195

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 equilibrium real GDP (Y*) ?

• A) $2,000 billion
• B) $6,000 billion
• C) $7,500 billion
• D) $8,000 billion

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Definitions:

Cognitive Functioning

The capacity of the brain to process information, encompassing abilities such as perception, memory, thinking, and problem-solving.

Computer Processing

The series of actions computers perform to manipulate data, including input, processing, output, and storage.

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Abilities that enable an individual to understand, control, and manipulate their own cognitive processes, such as planning, monitoring, and evaluating.

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