If Planned Aggregate Expenditure in an Economy Can Be Written

question 125

Multiple Choice

If planned aggregate expenditure in an economy can be written as PAE = 15,000 + 0.6Y - 20,000r,and potential output equals 34,000,what real interest rate must the central bank set to bring the economy to full employment?

• A) 3%.
• B) 4%.
• C) 5%.
• D) 6%.
• E) 7%.

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Definitions:

Coded

Processed or marked with a system of symbols or numbers for the purposes of identification or classification, especially in medical and data contexts.

Amebic Appendicitis

Inflammation of the appendix caused by an amoebic infection, a less common form of appendicitis.

Reported Code

The indicator or numerical/alphabetical value assigned to a particular condition, finding, or diagnosis for reporting purposes.

Hepatitis A

A contagious liver infection caused by the hepatitis A virus, primarily spread through ingestion of contaminated food or water.