Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 163

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. If the consumption function is JC = $500 + 0.8Y, planned investment = $200, government purchases = $300,
Jnet exports = $100, and real GDP = $1,000, what is the amount of aggregate expenditures?

• A) $800
• B) $1,000
• C) $1,100
• D) $1,900

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Definitions:

Need For Achievement

A motivational drive that pushes individuals to reach success, excel in their endeavors, and overcome challenges through personal effort.

Job Enrichment

Enhancing a job's meaningfulness through allowing more autonomy, responsibility, and variety in tasks, often to improve employee satisfaction and performance.

Motivators

Factors that encourage or stimulate a person to act or work harder, often enhancing their engagement and performance.

High Need

A psychological condition where an individual has a greater than average requirement for a certain stimulus or condition to achieve satisfaction.