Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 132

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. If the consumption function is
C = $500 + 0.8Y, planned investment = $200, government purchases = $300,
Net exports = $100, and real GDP = $1,000, what is the amount of aggregate expenditures?

• A) $800
• B) $1,000
• C) $1,100
• D) $1,900

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Definitions:

Systematic Desensitization

A therapeutic technique used to gradually reduce anxiety or fear towards a particular object or situation by slowly exposing the patient to the fear source while in a state of relaxation.

Token Economy

A behavioral modification technique that involves providing tokens as rewards for desired behaviors, which can later be exchanged for privileges or treats.

Operant Conditioning

A learning approach where the robustness of a behavior is changed by providing motivation or administering discipline.

Operant Conditioning

A form of learning in which the degree of a behavior is modified by giving reinforcements or implementing disciplinary actions.