Use the Following to Answer Questions

question 214

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 1
-(Exhibit: Aggregate Expenditures and Real GDP 1) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment. Suppose AE = C + I_P, and I_P is autonomous. If the level of real GDP equals $7,000 billion, and if there are no changes in the consumption function or in planned investment, then we expect that, in the next period, real GDP will

• A) rise.
• B) remain unchanged.
• C) fall.
• D) fall, but only if there is an offsetting change in autonomous consumption.

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Definitions:

Nondemand Manner

A communication approach that avoids pressuring or demanding responses from others.

Dilators

Instruments or devices used to widen or dilate an anatomical passage or opening in the body.

Covert Sensitization

A treatment for eliminating unwanted behavior by pairing the behavior with unpleasant mental images.

Aversive Stimulus

A stimulus that is unpleasant or noxious, which an organism seeks to avoid or escape.