If Planned Aggregate Expenditure (PAE)in an Economy Equals 4,000

question 95

Multiple Choice

If planned aggregate expenditure (PAE) in an economy equals 4,000 + 0.6Y and potential output (Y*) equals 9,800,transfer payments must be decreased by ________ (rounded to the nearest whole number) to eliminate any output gap.

• A) 10
• B) 100
• C) 1,111
• D) 33
• E) 133

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Definitions:

Property Rights

are the legal rights to possess, use, and dispose of assets, including real property and intellectual property.

Polluters

Entities, typically businesses or individuals, that introduce contaminants or pollution into the environment.

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A measure of the average climatic condition of the Earth, influencing and being influenced by various environmental factors.

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A rise in the average temperature of the Earth's climate system, often attributed to global warming and human activities.