Use the Following to Answer Questions

question 157

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. I_P is autonomous and the consumption function is C = $1,000 billion + 0.5Y. If Y= $6,000 billion, what is the value of consumption and planned investment?

• A) C = $3,000 billion, I_P = $3,000 billion
• B) C = $4,000 billion, I_P = $2,000 billion
• C) C = $5,000 billion, I_P = $1,000 billion
• D) C = $6,000 billion, I_P = zero

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Definitions:

Bartlett

Refers to Frederic Bartlett, a British psychologist who made significant contributions to the study of memory and cognition, particularly regarding how people reconstruct past events and remember stories.

Schemata

Schemata are cognitive frameworks or concepts that help individuals organize and interpret information, based on their past experiences and knowledge.

Serial Reproduction

A method in psychological research where information is passed from one individual to another sequentially, often used to study how information changes or degrades over repeated transmissions.