Consider a Simple Macro Model with a Constant Price Level

question 61

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 150 + 0.84Y,I = 400,G = 700,T = 0,X = 130,IM = 0.08Y.Desired consumption expenditure at equilibrium national income is

• A)1675.44.
• B)4060.04.
• C)4830.00.
• D)4980.00.
• E)6815.40.

---

Definitions:

Evolutionary Theories

A set of principles that explains how biological organisms have changed over time due to processes such as natural selection and genetic drift.

Charles Darwin

A naturalist known for his contributions to the science of evolution and natural selection.

Structuralism

An early school of psychology that used introspection to explore the elemental structure of the human mind, emphasizing the analysis of immediate experiences into basic elements.

Phrenology

A now-discredited theory that suggested the shape and size of the human skull could be used to determine personality traits and mental abilities.