When Compared to a Simple Macroeconomic Model (With Only Consumption

question 19

Multiple Choice

When compared to a simple macroeconomic model (with only consumption and investment) ,adding government and foreign trade to the AE function causes

• A)the autonomous component of AE to increase.
• B)the autonomous component of AE to fall.
• C)the AE function to become downward sloping.
• D)the AE function to become perfectly horizontal.
• E)no change in the AE function.

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Definitions:

Statistically Meaningful

Refers to results in data analysis that are unlikely to have occurred by chance and therefore indicate a significant effect or relationship.

Scientific Enterprise

The organized and systematic pursuit of knowledge involving the observation, identification, description, experimental investigation, and theoretical explanation of phenomena.

Ideal Scientist

A conceptual model of a scientist who embodies the virtues of curiosity, skepticism, objectivity, and the ethical pursuit of knowledge.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues and the promotion of secondary sexual characteristics.