In a Simple Economy in Which Prices Are Constant and with No

question 4

Multiple Choice

In a simple economy in which prices are constant and with no income taxes or imports,the slope of the AE curve is 0.8.In order to increase real GDP by $500 billion,then

• A) consumption expenditure needs to increase by $500 billion.
• B) saving needs to be reduced by $500 billion will lead to the increase of $500 billion.
• C) an increase in investment of $200 billion will lead to the increase of $500 billion.
• D) an increase in autonomous expenditure of $100 billion will lead to the increase of $500 billion.

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Definitions:

Karen Horney

A psychoanalyst known for her theories on neurosis, feminine psychology, and the concept of "basic anxiety."

Humanistic Perspective

is an approach in psychology that emphasizes individual potential for growth and the importance of human values, creativity, and self-fulfillment.

Self-efficacy

An individual's belief in their own capability to successfully complete tasks or achieve goals.

Feelings of Inferiority

An individual's persistent sense of inadequacy or lack of self-worth compared to others, which can influence motivation and behavior.