Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 154

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. If the consumption function is
C = $500 + 0.8Y, planned investment = $200, government purchases = $300,
Net exports = $100, and real GDP = $1,000, what is the amount of induced expenditures?

• A) $500
• B) $800
• C) $1,100
• D) $1,900

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Definitions:

Pharynx

A muscular tube that serves as a pathway for both air (to the larynx) and food (to the esophagus), playing a role in the respiratory and digestive systems.

Oropharynx

The part of the throat at the back of the mouth behind the oral cavity, including the tonsils.

Laryngopharynx

The lower part of the pharynx just below the oral and nasal cavities, serving as a pathway for food from the mouth and air from the nose.

Nasopharynx

The upper part of the throat located behind the nose, connected to the nasal cavities and the oropharynx.