In a Certain Year the Aggregate Demand at the Existing

question 227

Multiple Choice

In a certain year the aggregate demand at the existing price level consists of $100 billion of consumption, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases.Full-employment GDP is $200 billion.To obtain full employment under these conditions the government should:

• A)encourage personal saving by increasing the interest rate on government bonds.
• B)decrease government expenditures.
• C)reduce tax rates and increase government spending.
• D)discourage private investment by increasing corporate income taxes.

---

Definitions:

VALS Typology

A marketing tool used to predict consumer behavior based on the individual's values, attitudes, and lifestyles.

Primary Motivations

Fundamental reasons or driving forces that inspire individuals to take action or behave in a certain way.

Subgroups

Smaller, specific groups formed within a larger group based on shared characteristics or interests.

Geographic Segmentation

The division of a market into different geographical units such as nations, states, regions, or cities, to customize marketing strategies.