When Aggregate Expenditure Is Given as Y = 400

question 44

Multiple Choice

When aggregate expenditure is given as Y = 400 + 0.5Y, short-run equilibrium output equals:

• A) 1,200.
• B) 400.
• C) 600.
• D) 800.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the numbers are from the mean.

Mean

The arithmetic average of a set of values, calculated by adding all the values together and then dividing by the number of values.

Standard Deviations

An indicator of how much the values in a collection differ from each other.

Probability Density Functions

Mathematical functions that describe the likelihood of a continuous random variable taking on a particular value.