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

question 95

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 potential output equals 4,680,net taxes equal 40 and the central bank sets the interest rate at 0.05 (5%) ,then the bank must _______ the interest rate to ________ to restore full employment.

• A) raise;6%
• B) raise;7%
• C) lower;4%
• D) lower;3%
• E) lower;2%

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Definitions:

Recurring Coalitions

Coalitions or alliances that form repeatedly over time, usually in response to common interests or objectives.

Coalitions Form

The process by which groups come together to form alliances, often to achieve a common goal or address a shared concern.

Properties

Characteristics, attributes, or traits that define an object, situation, or entity, making it distinguishable from others.

Coalition

An alliance among individuals or groups, especially during a negotiation or in politics, to achieve a common goal.