In Econland,the Components of Planned Aggregate Expenditure Are Given By

question 103

Multiple Choice

In Econland,the components of planned aggregate expenditure are given by:
C = 500 + 0.75(Y - T) - 500r
I = 300 - 500r
G = 400
NX = 30
If net taxes equal 40 and the central bank sets the interest rate at 0.06 (6%) ,what is short-run equilibrium output?

• A) 4,520.
• B) 4,560.
• C) 4,600.
• D) 4,640.
• E) 4,680.

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Definitions:

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against infections and diseases.

Progressive Tax

A progressive tax is a tax system where the tax rate increases as the taxable amount or income goes up, placing a higher burden on wealthier individuals.

Absolute Amount

A total figure or quantity without any adjustments, reductions, or modifications, representing a raw or unadjusted figure.

Tax Rate

The percentage at which an individual or corporation is taxed.