Exhibit 11-2 -Refer to the Graph in the Exhibit.Consider an Economy Characterized

question 122

Multiple Choice

Exhibit 11-2

-Refer to the graph in the exhibit.Consider an economy characterized by the aggregate expenditure line.Suppose autonomous net taxes increased by $100.What would the equilibrium real GDP be equal to?  

• A) $400
• B) $500
• C) $600
• D) $700

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Definitions:

Act Utilitarianism

A ethical theory that posits the rightness or wrongness of an action is determined solely by its contribution to overall utility, measured by the amount of happiness or unhappiness it produces.

Truth Telling

The act of conveying information or expressions in an honest and accurate manner.

Utilitarians

Adherents of utilitarianism, a moral theory focusing on the consequences of actions and aiming for the greatest happiness for the greatest number of people.

Ethical Issues

Moral challenges that arise in professional or personal contexts, requiring consideration of right and wrong conduct.