Use the Following to Answer Questions

question 14

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 and Y* = equilibrium real GDP. Suppose AE = C + I_P, I_P is autonomous and the consumption function is C = $1,000 billion + 0.75Y. If firms produced a real GDP less than the Y*,

• A) AE would be greater than real GDP.
• B) AE would fall short of real GDP.
• C) actual investment would be greater than I_P.
• D) there would be an excess supply real GDP.

---

Definitions:

Charismatic Leadership

A leadership style in which the leader possesses exceptional personal qualities that inspire loyalty, enthusiasm, and devotion among followers.

Personal Identification

The process by which an individual comes to see themselves as possessing specific characteristics or attributes that define their personal identity.

Charismatic Leadership

A leadership style characterized by the ability to inspire and motivate followers through one's personality, communication, and actions.

Transformational Leadership

A leadership style that involves inspiring followers to commit to a shared vision, enhancing motivation, morale, and performance.