Use the Following Situation to Answer the Question : Situation

question 122

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 planned investment decreases by $100,the equilibrium aggregate output will change by

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

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Definitions:

Teratogenic Agents

Substances that can cause developmental malformations (birth defects) in an embryo or fetus when exposed during pregnancy.

Physiological State

The condition of the body at a given time, including its physical and chemical processes.

Wartime Famine

A severe shortage of food during a period of armed conflict, leading to widespread hunger and malnutrition.