Consider the Following Information Describing a Closed Economy with No

question 59

Multiple Choice

Consider the following information describing a closed economy with no government and where aggregate output is demand determined.All dollar figures are in billions. TABLE 21-3 Refer to Table 21-3.Suppose this economy is in equilibrium.There is then a significant decline in house prices across the country.The likely effect is

• A)autonomous consumption will rise above $300 billion and equilibrium national income will therefore rise.
• B)autonomous saving will fall and equilibrium national income will therefore fall.
• C)autonomous saving will rise and equilibrium national income will therefore rise.
• D)autonomous investment will rise and equilibrium national income will therefore rise.
• E)autonomous consumption will fall below $300 billion and equilibrium national income will therefore fall.

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Definitions:

Selective Serotonin Reuptake Inhibitor

A class of drugs that are typically used as antidepressants in the treatment of depression, anxiety disorders, and some personality disorders.

Suicidal Thoughts

Thoughts about or an unusual preoccupation with suicide, which can range from a detailed plan to a fleeting consideration, indicating a potential risk for suicide.

Tyramine-Free Diet

A dietary regimen aimed at avoiding foods containing tyramine, recommended for individuals taking certain medications such as monoamine oxidase inhibitors (MAOIs) to prevent adverse reactions.

Overgeneralization

A cognitive distortion involving making broad interpretations from a single or few events.