Difficulty: Medium Figure 13-4

question 117

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. I_P is autonomous and the consumption function is C = $1,000 billion + 0.5Y. If Y= $6,000 billion, what is the value of consumption and planned investment?

• A) C = $3,000 billion, I_P = $3,000 billion
• B) C = $4,000 billion, I_P = $2,000 billion
• C) C = $5,000 billion, I_P = $1,000 billion
• D) C = $6,000 billion, I_P = zero

---

Definitions:

Discrepancy Theory

A theory suggesting that dissatisfaction arises from a gap between an individual's desired and actual states.

Job Satisfaction

The level of contentment employees feel about their job roles, which can affect their performance and commitment to an organization.

Measure

A method or tool used to assess, quantify, or evaluate something, often used in analyzing performance or outcomes.

Short-lived

Lasting for only a brief period.