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

question 15

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. All other things unchanged, an increase in the price level,

• A) causes a movement up along a given aggregate expenditures curve and raises the equilibrium real GDP.
• B) causes a movement down a given aggregate expenditures curve and lowers the equilibrium real GDP.
• C) shifts the aggregate expenditures curve upwards and raises the equilibrium real GDP.
• D) shifts the aggregate expenditures curve downwards and lowers the equilibrium real GDP.

Comprehend the basis and benefits of international trade for individual nations.

Recognize the impact of U.S. self-sufficiency and export-import dynamics through history.

Analyze Joseph Stiglitz's criticisms of the IMF policies and their implications.

Understand the components and significance of net exports in the national economy.

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Definitions:

Social Groups

Collections of individuals who interact with each other, share similar characteristics, and collectively have a sense of unity.

Social Situation

The combination of social factors and cultural contexts that influence individuals' interactions and behaviors in a specific setting.

Micro-structures

The small-scale and often intricate social and organizational arrangements within societies, influencing how individuals interact and behave.

Macro-structures

Large-scale patterns and processes that characterize society as a whole.