Refer to Figure 1 Below

question 15

Multiple Choice

Refer to figure 1 below. If the vertical distance labelled Z represents a deflationary gap then which of the following statements is true? Figure 1

• A) Y₂ represents the full employment level of output and total expenditure must be reduced from C+I+G+(X-
• M)₂ to C+I+G+(X-
• M)₁ in order to increase output and employment.
• B) Y₁ represents the full employment level of output and total expenditure must be reduced from C+I+G+(X-
• M)₂ to C+I+G+(X-
• M)₁ in order to increase output and employment.
• C) Y₂ represents the full employment level of output and total expenditure must be increased from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ in order to increase output and employment.
• D) Y₁ represents the full employment level of output and total expenditure must be increased from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ in order to increase output and employment.

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Definitions:

Due Diligence

A comprehensive appraisal or investigation undertaken to evaluate the risks and merits before entering into an agreement or transaction.

Failure Analysis

The process of collecting and analyzing data to determine the cause of a failure, often with the goal of preventing it in the future.

Troubleshooting Report

A troubleshooting report documents the process of diagnosing and resolving problems with equipment, software, or systems, outlining the steps taken and solutions found.

Justification Reports

Documents written to explain the reasoning behind a decision or recommendation, often including evidence and analysis.