Assume a Closed Economy with No Government Sector

question 9

Multiple Choice

Assume a closed economy with no government sector. If the level of consumption in the economy is £200, savings is £150 and investment is £100, then planned aggregate expenditure in the economy will be equal to _____.

• A) £450
• B) £100
• C) £300
• D) £350

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Definitions:

Fear Response

The physiological and psychological reaction to perceived threats, activating the body's fight or flight response.

Conditioned Stimulus

A stimulus that initially has no effect but, after being paired with an unconditioned stimulus, eventually elicits a conditioned response.

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to be the basis of empathy and understanding others' actions.

Hopscotch

A children's game involving throwing a small object into numbered spaces outlined on the ground and hopping through the spaces to retrieve the object.