If Planned Autonomous Investment Is 500,autonomous Consumption 300,induced Consumption 2500,savings

question 14

Multiple Choice

If planned autonomous investment is 500,autonomous consumption 300,induced consumption 2500,savings 500,and government spending and taxes zero,then

• A)Ep is 3300 and the economy is in equilibrium.
• B)Ep is 3300 and the economy is out of equilibrium.
• C)Ep is 3500 and the economy is in equilibrium.
• D)Ep is 3500 and the economy is out of equilibrium.

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Definitions:

Novel Stimulation

New or unfamiliar stimuli that attract attention or elicit a response due to their difference from previous experiences.

Cognitive Dissonance

A psychological state of discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Facial-Feedback

The hypothesis that facial expressions can influence emotional experiences, suggesting that smiling can make one feel happier.

Metabolizes Food

The biochemical process by which organisms convert ingested food into energy and building blocks for growth, repair, and maintenance.