Use the Figure Below to Answer the Following Questions

question 129

Multiple Choice

Use the figure below to answer the following questions.
Figure 11.2.2
The economy depicted does not engage in international trade and has no government.Planned aggregate expenditure AE) is equal to the sum of consumption expenditure C) and investment I) .
-Refer to Figure 11.2.2.When real GDP is $100 billion,

• A)aggregate planned expenditure equals real GDP, and the economy is in equilibrium.
• B)aggregate planned expenditure is greater than real GDP, and firms decrease production.
• C)aggregate planned expenditure is less than real GDP, and firms increase production.
• D)real GDP is less than aggregate planned expenditure, and firms increase production.
• E)real GDP is greater than aggregate planned expenditure, and firms decrease production.

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Definitions:

Compound

A substance made by combining two or more different elements or ingredients.

Quantifier

A logical operator that determines the number of subjects within the discussion domain that fulfill a given open formula.

Atomic Open Sentence

A simple open sentence involving a variable, without any logical connectives, that can be made true or false by assigning values to the variable.

Symbolized Categorical Statement

A statement within formal logic that classifies members of categories and is often represented using symbols to express its logical structure.