If Planned Aggregate Expenditure (PAE)in an Economy Equals 2,000

question 114

Multiple Choice

If planned aggregate expenditure (PAE) in an economy equals 2,000 + 0.5Y and potential output (Y*) equals 4,400,government purchases must ________ to eliminate any output gap.

• A) increase by 20
• B) increase by 200
• C) increase by 250
• D) decrease by 200
• E) decrease by 250

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Definitions:

Mixed-Motives

In legal and organizational contexts, refers to decisions or actions influenced by both legitimate and illegitimate factors.

Gender Discrimination

Unfair treatment or consideration of an individual based on their gender, violating principles of equality and non-discrimination.

Lesbian

A woman who is emotionally, romantically, or sexually attracted to other women.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving a moral code and worship practices.