Use the Following to Answer Questions

question 151

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 2
-(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment. Consider a simple economy where AE = C + I_P, I_P is autonomous and the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of planned investment when real GDP is $6,000 billion?

• A) $3,000 billion
• B) $1,500 billion
• C) $1,000 billion
• D) zero

---

Definitions:

Nonconforming Goods

Products that fail to meet the quality, design specifications, or performance standards as outlined in a purchase contract.

Difficulty of Discovering

Refers to the challenges inherent in uncovering or identifying certain facts or truths, often used in legal contexts regarding the complexity of uncovering evidence.

Acceptance of Goods

The act by which a buyer indicates their agreement that the goods received from the seller conform to the contract specifications.

Reasonable Opportunity

A legal concept giving individuals or parties sufficient time and access to information necessary to make informed decisions or respond to legal processes.