Consider a Simple Macro Model with a Constant Price Level

question 130

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.Equilibrium national income is

• A)2037.48.
• B)3615.24.
• C)4000.00.
• D)4307.69.
• E)8000.00.

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Definitions:

Kohlberg

Refers to Lawrence Kohlberg, an American psychologist best known for his theory of stages of moral development.

Moral Development

The process through which individuals develop an understanding of right and wrong and establish personal values.

Social Norms

Unwritten rules or expected behaviors that are considered acceptable within a society or social group.

Unethical Practices

Actions or behaviors that go against moral principles and standards, often resulting in harm or disadvantage to others.