The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 105

Multiple Choice

The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80
• net tax rate (t) = 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. FIGURE 22-3
Refer to Figure 22-3.What is the equilibrium national income in this economy?

• A)$1470.59
• B)$3125.00
• C)$1975.00
• D)$5000.00
• E)$6171.87

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Definitions:

Time-Consuming

Activities or processes that require a substantial amount of time to complete.

Credibility Gap

The distrust or skepticism that arises when there is a perceived disconnect between what an individual or organization says and what they actually do.

Human Resources

Concerns all aspects of employment, including recruitment, staffing, training, payroll, benefits administration, and compliance with labor laws.

Management and Staffs

The process and people involved in planning, organizing, leading, and controlling an organization's resources to achieve its objectives.