Consider the Following Simple Macro Model with a Constant Price

question 48

Multiple Choice

Consider the following simple macro model with a constant price level and demand-determined output: C = 150 + 0.9 , = 0.8Y,I = 400,G = 700,T = (0.2) Y,X = 130,IM = (0.08) Y.Equilibrium national income is

• A)1380.00.
• B)1916.67.
• C)2156.25.
• D)3833.33.
• E)4928.57.

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Definitions:

Serotonin

A neurotransmitter involved in emotional arousal and sleep; deficiencies of serotonin have been linked to eating disorders, alcoholism, depression, aggression, and insomnia.

Emotional Arousal

The process of becoming mentally and physically activated with emotions, which can be triggered by thoughts, memories, or external events.

Gamma-aminobutyric Acid

A neurotransmitter in the brain that plays a key role in reducing neuronal excitability throughout the nervous system.

Endocrine System

A network of glands in the body that secrete hormones directly into the circulatory system to regulate the body's growth, metabolism, and homeostasis.