Consider a Simple Macro Model with a Constant Price Level

question 111

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 120 + 0.86Y,I = 300,G = 520,T = 0,X = 180,IM = 0.12Y.If national income is 2400,then desired aggregate expenditure is

• A)1120.
• B)1776.
• C)2896.
• D)3184.
• E)3472.

---

Definitions:

Behavior

The actions or reactions of an object or organism, usually in relation to the environment.

Person

An individual human being, characterized by unique physical, psychological, and social attributes.

Observable

Qualities, actions, or reactions that can be noticed or measured by someone else through direct visual perception or using scientific tools.

Action

The process or state of acting or doing something, typically to achieve a goal or purpose.