Exhibit 9-8 Keynesian Aggregate Expenditures Model

question 36

Multiple Choice

Exhibit 9-8 Keynesian aggregate expenditures model
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In Exhibit 9-8, an increase in aggregate expenditures of 100 causes real GDP to rise by:

• A) $100.
• B) $200.
• C) $300.
• D) $400.

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Definitions:

Increased Arousal

An increased level of awareness and physical preparedness for action, frequently linked to stress or anxiety.

Reduced Responsiveness

A decrease in the usual reaction to external stimuli, often seen in various neurological or psychological conditions.

Hypothalamic-Pituitary-Adrenal Pathway

A major part of the neuroendocrine system that controls reactions to stress and regulates many body processes, including digestion, the immune system, mood and emotions, sexuality, and energy storage and expenditure.

Stress Response

The body's reaction to a challenge or demand, characterized by physiological and psychological changes that prepare the individual to deal with stressors.