Use the Following to Answer Questions

question 150

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 real GDP = $5,000 billion, what is the amount of aggregate expenditures?

• A) $4,500 billion
• B) $5,000 billion
• C) $5,500 billion
• D) $6,000 billion

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Definitions:

X-axis

The horizontal axis in a graph or chart, commonly used to represent the independent variable's range of values.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around a central mean.

Z Score

A measure of how many standard deviations an element is from the mean.

Distance From The Mean

The absolute difference between a specific value and the average of all values in a dataset.