If Planned Aggregate Expenditure (PAE)in an Economy Equals 1,000

question 124

Multiple Choice

If planned aggregate expenditure (PAE) in an economy equals 1,000 + 0.9Y and potential output (Y*) equals 9,000, then this economy has:

• A)an expansionary gap.
• B)a recessionary gap.
• C)no output gap.
• D)no autonomous expenditure.

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Definitions:

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to personal satisfaction or interest, rather than for some separable consequence.

Extrinsic Motivation

Motivation driven by external rewards, such as money, fame, grades, and praise, rather than by intrinsic enjoyment or interest in the task itself.

Homeostatic Motivation

A drive to maintain internal equilibrium among bodily functions and needs.

Self-Actualization

The attainment or completion of one's skills and possibilities, viewed as a natural desire or requirement found in every person.