In an Economy, Autonomous Spending Is $20 Trillion and the Slope

question 46

Multiple Choice

In an economy, autonomous spending is $20 trillion and the slope of the AE curve is 0.8. Equilibrium expenditure is ________. With a fixed price level, the multiplier is ________.

• A)$25 trillion; 1.25
• B)$100 trillion; 1.25
• C)$25 trillion; 5
• D)$20 trillion; 4
• E)$100 trillion; 5

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Definitions:

Behavior

The actions or reactions of a person or animal in response to external or internal stimuli.

Emotion

Cognitive interpretation of subjective experiences that can influence thought and behavior.

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A progressive neurodegenerative disease that causes memory loss, impaired reasoning, and changes in personality, mainly affecting the elderly.

Genetic Predisposition

Refers to the increased likelihood of developing a particular disease based on a person's genetic makeup.