Figure 13-6 -Refer to Figure 13-6. Let Y = Real GDP, AE

question 61

Multiple Choice

Figure 13-6
-Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous.
JIf real GDP produced is $4,000, how will equilibrium be restored in the economy?

• A) Policymakers must conduct contractionary policies to move the economy toward its equilibrium real GDP.
• B) Firms will reduce their output in subsequent periods, moving the economy toward its equilibrium real GDP.
• C) The price level must rise to reduce aggregate expenditures and restore equilibrium.
• D) The price level must fall to increase aggregate expenditures and restore equilibrium.

---

Definitions:

X Chromosome

One of the two sex chromosomes, which is present in both males (XY) and females (XX) and carries genes related to sex determination and other biological functions.

Y Chromosome

One of the two sex chromosomes, typically associated with male biological characteristics in humans.

XY Chromosomes

A pair of sex chromosomes present in males that determines male biological sex in humans and most other mammals.

Social Scripts

Predefined, stereotyped sequences of actions or behaviors that individuals follow in specific social contexts.