Assume a Model with No Government, Where Consumption Is the Only

question 28

Multiple Choice

Assume a model with no government, where consumption is the only component of aggregate demand.If the consumption function is of the form C = 400 + (0.9) Y, what is the equilibrium level of consumption?

• A)400
• B)1)000
• C)1,600
• D)3,600
• E)4,000

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Definitions:

Black Bile

An ancient medical concept, part of the four humors theory, believed to be responsible for melancholic temperament and conditions.

Major Depressive Disorder

A mood disorder identified by a constant feeling of depression or an absence of pleasure in tasks, resulting in major hindrances in day-to-day activities.

Persistent Depressive Disorder

A chronic form of depression characterized by a depressed mood for most of the day, more days than not, for at least two years.

Major Depressive Disorder

A psychiatric condition characterized by a lasting feeling of melancholy or lack of desire in pursuits, which severely impacts daily lifestyle.