If Planned Aggregate Expenditure in an Economy Can Be Written

question 30

Multiple Choice

If planned aggregate expenditure in an economy can be written as PAE = 15,000 + 0.6Y - 20,000r,and potential output equals 36,000,what real interest rate must the central bank set to bring the economy to full employment?

• A) 2%.
• B) 3%.
• C) 4%.
• D) 5%.
• E) 6%.

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Definitions:

Encourager

A person or stimulus that motivates or inspires others to take action or continue with a task, often providing support, confidence, or enthusiasm.

Maintenance Role

Activities or functions performed within a group to encourage cohesion, support interpersonal relations, and ensure the group's sustainability.

Support Group

A group of people with common experiences or concerns who provide each other with encouragement, comfort, and advice.

Social Action Group

A collective of individuals who come together to promote or enact change within society, often focused on specific issues or causes.