Consider the Following Information Describing a Closed Economy with No

question 35

Multiple Choice

Consider the following information describing a closed economy with no government and where aggregate output is demand determined.All dollar figures are in billions. TABLE 21-3
-Refer to Table 21-3.At the equilibrium level of national income,desired investment ($billions) is

• A)$100.
• B)$4000.
• C)$3900.
• D)$400.
• E)$1000.

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Definitions:

Escalating Commitment

The continuation of a course of action even though it is not working.

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Increase effort refers to actions taken to enhance the amount of work or intensity put into achieving a task or objective.

Creativity Skills

Creativity skills involve the ability to think outside the box and generate innovative ideas or solutions.

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