Consider a Simple Macro Model with a Constant Price Level

question 107

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.The vertical intercept of the AE function is

• A)60.0.
• B)210.0.
• C)300.0.
• D)414.4.
• E)560.0.

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Definitions:

Life Review

The process, often occurring in late adulthood, of reflecting on past experiences and evaluating them.

Ego Integrity

Sense of wholeness that comes from having lived a full life, possessing the ability to let go of regrets; the final completion of the ego.

Despair

A feeling of loss of hope or confidence; profound discouragement.

Wealthy

Having a large amount of money or assets; affluence.