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:

Effort

The amount of physical or mental energy expended towards achieving a goal or task.

Skill-Based Pay

A compensation system that rewards employees for the skills and knowledge they acquire and are able to apply in their jobs, rather than for their job title or position alone.

Blue-Collar Workers

Blue-collar workers are individuals engaged in manual labor or skilled trades, often involving physical work in industries such as manufacturing, construction, and maintenance.

U.S. Organizations

Organizations that are based or operate primarily within the United States, governed by U.S. laws and regulations.