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

question 151

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 the multiplier?

• A) 0.75
• B) 1.33
• C) 4.00
• D) It depends on the ∆AE and the ∆Y since the multiplier formula is ∆AE ÷∆Y.

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Definitions:

Dyadic Effect

The reciprocal nature of self-disclosure: “You disclose to me, and I’ll disclose to you.”

Self-Disclosure

The act of revealing personal information to others, which can strengthen relationships but also entails risk of vulnerability.

Relational Dialectics Theory

Theory that views relational development as the management of tensions that pull us in two directions at the same time (connection-autonomy; predictability-novelty; openness-closedness).

Tensions Management

The process of dealing with and balancing various opposing forces or elements within personal or professional contexts, aiming to reduce conflict and maintain stability.