Scenario 21-1 Consider the Following Data for a Closed Economy

question 190

Multiple Choice

Scenario 21-1

Consider the following data for a closed economy:

Y = $12 trillion
C = $8 trillion
I = $2 trillion
G = $2 trillion
TR = $2 trillion
T = $3 trillion

-Refer to Scenario 21-1. Based on the information above, what is the level of private saving in the economy?

• A) $3 trillion
• B) $4 trillion
• C) $5 trillion
• D) $8 trillion

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Definitions:

Philip Tetlock

A political scientist known for his work on the accuracy of political forecasts and the psychology of judgment.

Overconfidence

Refers to the cognitive bias where an individual's subjective confidence in their judgments is reliably greater than their objective accuracy.

Economic and Military Predictions

The process of forecasting future economic trends and military capabilities or situations based on current data and trends.

Correlational Design

A type of research methodology that examines the relationship between two or more variables without manipulating them.