In a Certain Economy, the Components of Aggregate Spending Are

question 140

Multiple Choice

In a certain economy, the components of aggregate spending are given by: C = 60 + 0.6(Y - T) - 1,000r
I = 200 - 1,000r
G = 200
NX = 50
T = 100
Given the information about the economy above, what would be the impact on short-run equilibrium output of a one-percentage-point increase in the real interest rate from 4 percent to 5 percent?

• A) Short-run equilibrium output would increase by 55 units.
• B) Short-run equilibrium output would decrease by 2,000 units.
• C) Short-run equilibrium output would decrease by 50 units.
• D) Short-run equilibrium output would decrease by 20 units.

Explore the financial and managerial accounting principles.

Understand the components and preparation of the statement of cost of goods manufactured.

Analyze the effects of inventory changes on cost of goods sold and net income.

Identify and categorize different types of costs including direct materials, direct labor, and overhead.

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Definitions:

Private Consumptions

Private consumption refers to the spending on goods and services by individuals and households in an economy, excluding government expenditure.

Private Consumptions

The spending by households on goods and services, excluding purchases of new housing but including healthcare, education, and entertainment.

Majority Vote

A decision-making rule where the option that receives more than half of the votes is chosen.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many people simultaneously without depletion.