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

question 45

Multiple Choice

Exhibit 23-6
-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:

Immigration

The process of moving to a new country or region with the intention of settling and living there.

Birthrate

The rate at which births occur in a population, typically expressed as the number of births per 1,000 people per year.

Cultural Competence

The ability to understand, communicate with, and effectively interact with people across cultures.

Racial Bias

The positive or negative prejudices or stereotypes towards individuals or groups based on their race, often unconsciously held.