Use the Following Situation to Answer the Question : Situation

question 77

Multiple Choice

Use the following Situation to answer the question : situation 20-1
Assume a closed economy with no government. Suppose that autonomous consumption equals $400, planned investment equals $500, and the mpc equals 0.9.
-Using the information contained in Situation 20-1,if autonomous consumption increases by $100,then equilibrium aggregate output will change by

• A)-$1,000.
• B)-$100.
• C)$100.
• D)$1,000.

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Definitions:

Empiricism

The idea that everything a person knows comes from experience.

Naturalism

A philosophical viewpoint that everything arises from natural properties and causes, and supernatural explanations are excluded or discounted.

Individualism Versus Collectivism

A cultural dimension that describes the degree to which a society emphasizes individual achievement and autonomy (individualism) or prioritizes the group and community over the individual (collectivism).

Personal Freedoms

The rights and liberties that allow individuals to express themselves, make personal choices, and live their lives without undue interference from others or the government.