Difficulty: Medium Figure 13-4

question 73

Multiple Choice

Difficulty: Medium Figure 13-4
-Refer to Figure 13-4. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption,
I_P = Planned Investment. Suppose AE = C + I_P, and I_P is autonomous. Which of the following statements is true?

• A) The multiplier = 0.5
• B) The multiplier = (1 − 0.5)/1 = 0.5
• C) The multiplier = 2
• D) The multiplier = ∆AE ÷ ∆Y

Understand the relationship between positive psychology and other psychological orientations such as humanism.

Appreciate the methodology and importance of research within positive psychology.

Identify the characteristics and benefits of positive subjective states and emotions.

Understand the relationship between aggregate demand and aggregate supply curves and how they determine the equilibrium in the long run and short run.

---

Definitions:

Young-Helmholtz Theory

A theory of color vision proposing that the eye contains three types of color receptors sensitive to red, green, and blue, which can produce the perception of all colors through their combined activity.

Primary Color

A base color that cannot be created by combining other colors in the color spectrum, usually red, blue, and yellow in traditional color theory.

Discriminate

to distinguish or differentiate between things or people based on certain criteria, which can be both positive, such as recognizing differences, and negative, leading to prejudice.

Saturation

The point at which a substance can no longer absorb or dissolve another substance, or in qualitative research, the stage at which no new information is obtained.