The figure given below shows the aggregate expenditure curve of an open economy.
Figure 10.1
In the figure:
C1: Consumption
I1: Investment
G1: Government spending
X1: Net Exports
-According to Figure 10.1, when real GDP is at G:
A) there is pressure for the economy to expand.
B) there are unplanned reductions in inventory.
C) aggregate expenditures are less than real GDP.
D) the economy has achieved macroeconomic equilibrium.
E) there is pressure for the economy to contract.
Correct Answer:
Verified
Q5: At the equilibrium level of income, which
Q7: Assume we are at an income level
Q10: The figure given below shows the aggregate
Q11: Which of the following can be considered
Q12: The table given below states the
Q14: In macroeconomics, equilibrium is defined as the
Q15: The table given below shows the
Q17: The table given below shows the
Q18: The table given below shows the
Q19: The table given below states the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents