Consider a Simple Macro Model with a Constant Price Level

question 111

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 120 + 0.86Y,I = 300,G = 520,T = 0,X = 180,IM = 0.12Y.If national income is 2400,then desired aggregate expenditure is

• A)1120.
• B)1776.
• C)2896.
• D)3184.
• E)3472.

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Definitions:

Sensation

The method through which our sensory receptors and nervous system perceive and portray the energies of stimuli from our surroundings.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Kinesthetic Sense

The awareness of the position and movement of parts of the body through the sense of muscular and skeletal movement.

Muscle Fibers

The cells of muscles that contract to produce movement, classified into types such as slow-twitch and fast-twitch based on their properties.