Let AE = Aggregate Expenditures, C = Consumption, I_P =

question 86

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, JG = Government Purchases. Consider a simple aggregate expenditures model, where
JAE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. In this model, the slope of the AE curve is the

• A) MPC and the multiplier is 1 ÷ (1 - MPC).
• B) MPC and the multiplier is 1 ÷ MPC.
• C) multiplier and the multiplier is 1 ÷ MPS.
• D) MPC and the multiplier is ∆AE ÷ ∆Y where Y = real GDP.

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Definitions:

Haitian Revolution

A successful anti-slavery and anti-colonial insurrection by self-liberated slaves against French colonial rule in Saint-Domingue, now Haiti, from 1791 to 1804.

Louisiana Purchase

was the acquisition of the Louisiana territory by the United States from France in 1803, significantly expanding the size of the nation.

Episodic Memory

It's a kind of lasting memory focused on the retrieval of certain occurrences, contexts, and individual experiences.

Temporary Memory

A cognitive system that temporarily stores and manages information required for complex cognitive tasks like learning, reasoning, and comprehension.