Table 36-1 Suppose the Economy of Macroland Is Described by the Following

question 15

Multiple Choice

Table 36-1 Suppose the economy of Macroland is described by the following: C = 200 + 0.8 DI (DI = disposable income)
I = 300 + 0.2 Y − 50 r ( Y = GDP)
( r , the interest rate, is measured in percentage points. For example, a 9 percent interest rate is r = 9) . For this economy, assume that the Federal Reserve uses its monetary policy to peg the interest rate at
R = 5
G = 750
T = 0.25 Y
X = 200
M = 150 + 0.2 Y
Hint: DI = Y − T
From Table 36-1, find the trade deficit or surplus.

• A) 475 deficit
• B) 75 deficit
• C) 75 surplus
• D) 475 surplus

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Definitions:

Cross-Sectional Surveys

Research tools used to gather information from a sample population at one specific point in time to analyze trends or patterns.

Theoretical Frameworks

Structured sets of concepts and ideas that guide academic research and interpretation of data.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Strength and Vulnerability Integration Theory

A theory suggesting how factors of strength and vulnerability interact within individuals, influencing their ability to cope with stresses and challenges.