Use the Figure Below to Answer the Following Question(s)

question 147

Multiple Choice

Use the figure below to answer the following question(s) .

Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government.Planned aggregate expenditure equals the sum of consumption expenditure (C) and investment (I) .
-Refer to Figure 27.3.1.Autonomous expenditure equals

• A)$100 billion.
• B)$25 billion.
• C)$50 billion.
• D)$125 billion.
• E)none of the above.

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Definitions:

Laspeyres Price Index

Amount of money at current year prices that an individual requires to purchase a bundle of goods and services chosen in a base year divided by the cost of purchasing the same bundle at base-year prices.

Price Changes

Refers to the variation in the cost of goods and services over time, often influenced by factors such as supply and demand, inflation, and market competition.

Consumption

The act of using goods and services to satisfy needs or desires.

Time Constraint

A limitation or restriction on the period within which something can be achieved.