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

question 171

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. If real GDP produced is $4,000, what is the amount of unplanned investment?

• A) zero
• B) $1,200 billion
• C) $2,400 billion
• D) $2,800 billion

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Definitions:

Market Index

A hypothetical portfolio of investment holdings that represents a segment of the financial market, used as a benchmark to measure an investment's performance.

Standard Deviation

A statistical measurement of variation or dispersion around an average, indicating how much a set of numbers is spread out.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scale from -1 to 1.

Treasury Yields

Treasury yields are the returns on investment for U.S. government debt obligations, such as bonds, notes, and bills, serving as a benchmark for other interest rates.