Use the Following Situation to Answer the Question : Situation

question 77

Multiple Choice

Use the following Situation to answer the question : situation 20-1
Assume a closed economy with no government. Suppose that autonomous consumption equals $400, planned investment equals $500, and the mpc equals 0.9.
-Using the information contained in Situation 20-1,if autonomous consumption increases by $100,then equilibrium aggregate output will change by

• A)-$1,000.
• B)-$100.
• C)$100.
• D)$1,000.

---

Definitions:

Language

A system of communication used by a particular community or country, involving the use of words in a structured and conventional way.

Chomsky

Noam Chomsky, a prominent linguist known for his theories on the innate aspects of language, cognitive development, and for his critique of media and politics.

Preschooler

A child between the ages of approximately 3 and 5 years, typically attending preschool before commencing formal education.

Overconfidence

Overconfidence refers to the phenomenon where an individual's belief in their own abilities or the likelihood of their success is disproportionally higher than the objective accuracy of those beliefs.