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The Figure Given Below Represents the Leakages and Injections in an Economy

Question 34

Multiple Choice

The figure given below represents the leakages and injections in an economy. Figure 10.2 The figure given below represents the leakages and injections in an economy. Figure 10.2   In the figure: I, I<sub>1</sub>: Investment; G: Government spending; EX, EX<sub>1</sub>: Exports; T: Taxes;and M: Imports. According to Figure 10.2, real GDP of $200 indicates a point where: A) total leakages exceed total injections. B) aggregate expenditures exceed total output. C) consumers engage in dissaving. D) the economy is in macroeconomic equilibrium. E) unplanned inventory changes will be positive. In the figure:
I, I1: Investment;
G: Government spending;
EX, EX1: Exports;
T: Taxes;and
M: Imports.
According to Figure 10.2, real GDP of $200 indicates a point where:


A) total leakages exceed total injections.
B) aggregate expenditures exceed total output.
C) consumers engage in dissaving.
D) the economy is in macroeconomic equilibrium.
E) unplanned inventory changes will be positive.

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