In a Certain Economy, the Components of Aggregate Spending Are

question 135

Multiple Choice

In a certain economy, the components of aggregate spending are given by: C = 500 + 0.8(Y - T) - 300r
I = 200 - 400r
G = 200
NX = 10
T = 150
Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?

• A) 3,860
• B) 762
• C) 3,810
• D) 1,372

---

Definitions:

Decibel Level

A unit of measurement for the intensity of sound, defined as ten times the logarithm to base 10 of the ratio of two power levels.

Anger

A strong emotion characterized by feelings of hostility, frustration, or antagonism towards someone or something perceived to have caused harm.

Synapses

The junctions between nerve cells where transmission of electrical or chemical signals occurs, enabling communication within the nervous system.

Depression

A mental health disorder characterized by a persistently depressed mood or loss of interest in activities, leading to significant impairment in daily functioning.