Use the Following to Answer Questions

question 33

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 1
-(Exhibit: Aggregate Expenditures and Real GDP 1) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment. Suppose AE = C + I_P. I_P is autonomous and the consumption function is C = $1,000 billion + 0.5Y. If I_P = $2,000 billion, what is the equilibrium level of real GDP?

• A) $4,500 billion
• B) $6,000 billion
• C) $7,500 billion
• D) $9,000 billion

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Definitions:

Supply Chain

A network of entities, including suppliers, manufacturers, and retailers, involved in the production, transportation, and distribution of goods from raw materials to final consumers.

Just-In-Time

A supply chain and inventory management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs.

Supply Chain Orientation

A management philosophy that guides the actions of company members toward the goal of actively managing the upstream and downstream flows of goods, services, finances, and information across the supply chain.

Logistics Approach

An overarching strategy in managing the complete process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods from origin to consumption.