Use the Following to Answer Questions

question 210

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 2
-(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment. Consider a simple economy where AE = C + I_P, I_P is autonomous and the consumption function is given by C = $1,000 billion + 0.75Y. If potential real GDP is $9,000 billion, by how much must planned investment change to reach potential real GDP?

• A) I_P must increase by $250 billion.
• B) I_P must decrease by $250 billion.
• C) I_P must increase by $1,000 billion.
• D) I_P must decrease by $1,000 billion.

Differentiate between projection, halo effect, and other perceptual biases.

Explore the concepts of self-fulfilling prophecy and expectancy effects in organizational behavior.

Recognize the implications of perceptual defense mechanisms in personal and professional interactions.

Understand the challenges and solutions for managing expatriates and global teams.

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Definitions:

Aldaric Acid

A type of sugar acid obtained by oxidizing both the aldehyde group and the primary alcohol group of an aldose to carboxylic acids.

Optically Active

Refers to substances capable of rotating the plane of polarized light due to the presence of chiral molecules.

Bromine Water

An aqueous solution of bromine used as a reagent to test for the presence of unsaturation in organic compounds.

Aldaric Acid

A type of sugar acid resulting from the oxidation of both the aldehyde and primary alcohol groups of an aldose.