In a Certain Economy, the Components of Aggregate Spending Are

question 109

Multiple Choice

In a certain economy, the components of aggregate spending are given by: C = 500 + 0.75(Y - T) - 500r
I = 300 - 500r
G = 400
NX = 30
T = 40
Given the information about the economy above, which expression below gives autonomous expenditures?

• A) [1,270 - 1,000r] + 0.75Y
• B) [1,200 - 1,000r]
• C) [1,230 - 1,000r]
• D) [1,200 - 1,000r] + 0.75Y

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Definitions:

Marginal Product

The extra output produced by using an additional unit of a particular production factor, while holding other factors steady.

Candy Bars

Confectionery items that consist of chocolate and other sweet ingredients, often with a filling or coating.

VMPL

The value of the marginal product of labor, which denotes the additional value generated by employing one more worker.

Labor

The human effort, whether physical or mental, used in the production of goods and services.