Using the Scree Plot Below,how Many Factors Should Be Retained

question 12

Multiple Choice

Using the scree plot below,how many factors should be retained?

• A)2
• B)4
• C)5

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Definitions:

Discretionary Aggregate Demand

Demand for goods and services in the economy that is influenced by government policy decisions, beyond automatic stabilizers.

Economic Tradition

The historical and cultural practices, beliefs, and philosophies that influence and shape an economy's structure, policy, and development.

Policy Rule

A guideline or protocol for economic policy that stipulates specific actions or responses to changes in economic indicators.

Monetarists' Prescription

Recommendations or policies suggested by monetarists, focusing on controlling the money supply to manage economic stability and inflation.