Figure 87 Alt Text for Figure 8

question 218

Multiple Choice

Figure 8.7 Alt text for Figure 8.7: In figure 8.7, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.7: The x-axis is labelled, real GDP, Y (trillions of 2002 dollars) .The y-axis is labelled, real aggregate expenditure, AE (trillions of 2002 dollars) .Line AE1, begins a little less than half way along the x-axis and slopes up to the end of the x-axis.Line AE2, is to the right of AE1 and is on a similar path as line AE1, sloping up to the top right corner.Line Y = AE, originates at the vertex and slopes up to the top right corner.Line Y = AE meets line AE2 at point K, half way along both the lines, and meets line AE1 at point N, plotted close to the right end of line AE1.Point J is plotted a little less than half way along line AE2, to the left of point K.Point L is marked close to the right end of line AE2, to the right of point K.
-Refer to Figure 8.7.Suppose that investment spending decreases by $5 million, decreasing aggregate expenditure and decreasing real GDP from GDP₂ to GDP₁.If the MPC is 0.8, then what is the change in GDP?

• A)-$4 million
• B)-$5 million
• C)-$25 million
• D)-$40 million
• E)-$50 million

---

Definitions:

Trouble Breathing

A condition also known as dyspnea, which is the feeling of not being able to get enough air or breathe properly.

Motor Cortex Activity

Neural activity in the region of the cerebral cortex involved in planning, control, and execution of voluntary movements.

Extreme Sleepiness

A condition marked by an overwhelming desire to sleep at inappropriate times, potentially due to underlying medical or psychological conditions.

Stage 2

In the context of sleep studies, the second stage of the sleep cycle, characterized by the presence of sleep spindles and K complexes, marking a deeper level of sleep than Stage 1.