- According to Exhibit 23-6, Line Abd Shows the Path of Potential

question 76

Multiple Choice

- According to Exhibit 23-6, line abd shows the path of potential GDP. In Year 2, suppose the expenditure line intersects the 45-degree line at the level of spending corresponding to point b. If, in Year 3, the economy is at point e, then

• A) the expenditure line has shifted up the 45-degree line to a point where real GDP equals potential GDP in Year 3.
• B) the expenditure line has shifted up the 45-degree line, but the level of income is less than the amount corresponding to real GDP.
• C) the expenditure line has shifted down the 45-degree line.
• D) the expenditure line has shifted up the 45-degree line more than it would have if real GDP equaled potential GDP in Year 3.
• E) potential GDP has declined, and we've moved to a new point of spending balance.

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Definitions:

Half-Siblings

Biological siblings who share one parent in common but not both.

Dizygotic Twins

Also known as fraternal twins, they are two siblings conceived in the same pregnancy but from separate eggs fertilized by separate sperm.

Monozygotic Twins

Identical twins that result from the splitting of a single fertilized egg, sharing the same genetics but potentially differing in environmental factors.

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A genetic disorder affecting the exocrine glands, leading to the production of abnormally thick mucus, causing issues in the respiratory, digestive, and reproductive systems.