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

question 119

Multiple Choice

Figure 13-5
-Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment and Y* = equilibrium real GDP. Suppose AE = C + I_P, I_P is autonomous and the consumption function is C = $1,000 billion + 0.75Y. If firms produced a real GDP less than the Y*,

• A) AE would be greater than real GDP.
• B) AE would fall short of real GDP.
• C) actual investment would be greater than I_P.
• D) there would be an excess supply real GDP.

---

Definitions:

Negative Stressors

Factors or situations that cause stress and negatively impact an individual's physical or mental health.

Positive Events

Occurrences or activities that have a favorable impact on one's emotions or situations.

Lithium Carbonate

A chemical compound used primarily in the treatment of bipolar disorder and other mood disorders by stabilizing mood.

Serum Lithium Level

The concentration of lithium in the blood, monitored to manage and adjust the dosage of lithium medication for bipolar disorder treatment.