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

question 12

Multiple Choice

In Macroland,the components of planned aggregate expenditure are given by:
C = 100 + 0.9(Y - T) - 500r
I = 150 - 1,000r
G = 200
NX = 50
If potential output equals 3,500,net taxes equal 100,and the central bank sets the interest rate to equal 0.05 (5%) ,then at the short-run equilibrium,there is a(n) _________ gap of ________.

• A) expansionary;100
• B) expansionary;150
• C) recessionary;50
• D) recessionary;100
• E) recessionary;150

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Definitions:

Breadwinner

The primary income earner in a household, responsible for supporting the financial needs of the family.

Peer Group

People who are similar in age, social status, and interests.

Social Status

Refers to the relative rank or position that an individual holds in a society, influenced by wealth, occupation, education, and other factors.

Traditional Gender Roles

The societal norms dictating the types of behaviors which are generally considered acceptable, appropriate, or desirable for people based on their sex.