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, the economy will expand when aggregate expenditures are at:
A) point D.
B) point A.
C) point B.
D) point C.
E) point E.
Correct Answer:
Verified
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