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

question 128

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. What is the marginal propensity to consume?

• A) 0.25
• B) 0.5
• C) 1.0
• D) 2

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Definitions:

Composite Units

A measure used in cost accounting to group heterogeneous products or services into a single unit for costing purposes.