Scenario 34-1

question 119

Multiple Choice

Scenario 34-1. Take the following information as given for a small economy:
• When income is $10,000, consumption spending is $6,500.
• When income is $11,000, consumption spending is $7,250.
-Refer to Scenario 34-1. For this economy, an initial increase of $200 in net exports translates into a(n)

• A)$570 increase in aggregate demand when the crowding-out effect is taken into account.
• B)$800 increase in aggregate demand when the crowding-out effect is taken into account.
• C)$1,400 increase in aggregate demand in the absence of the crowding-out effect.
• D)$800 increase in aggregate demand in the absence of the crowding-out effect.

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Definitions:

Polio

A contagious viral illness that can cause paralysis, difficulty breathing, and sometimes death, primarily affecting children.

Developmental Task

A skill or growth milestone that is expected to be achieved by individuals at a specific age or stage of life.

Community Health Center

A not-for-profit, consumer-directed healthcare organization that provides access to high quality, affordable, and comprehensive primary and preventive care.

Family Structure

The composition and framework of a family unit, including its members and their relationships to one another.