Use the Following to Answer Questions

question 83

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 = $7,000 billion, what is the amount of aggregate expenditures?

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

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Definitions:

Lascaux Caves

Prehistoric cave systems in France, famous for their Paleolithic cave paintings of large animals, which are among the finest examples of art from the Upper Paleolithic period.

Twisted Perspective

An artistic technique where a figure is depicted in a profile view while some parts of the same figure are shown in frontal view.

Descriptive Convention

Established methods and rules in art or literature that guide the representation or description of subjects, often based on cultural or historical practices.

Optical Convention

Established methods and practices in art and design that simulate how the human eye perceives the world.