Consider a Simple Macro Model with a Constant Price Level

question 116

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.The vertical intercept of the AE function is

• A)120.0.
• B)420.0.
• C)600.0.
• D)828.8.
• E)1120.0.

---

Definitions:

Education

The process of receiving or giving systematic instruction, especially at a school or university, but also through life experiences and self-learning.

Lower Rates of Asthma

A decrease in the incidence of asthma, a chronic respiratory condition marked by episodes of airflow obstruction.

Preventable Death

A death that could have been avoided through effective public health measures, medical interventions, or changes in personal behaviors.

Drug Abuse

The improper or unsafe use of drugs, including prescription medications, over-the-counter drugs, alcohol, and illicit substances, often leading to addiction and other harmful effects.