The Diagram Below Shows Alternate Paths for Two Hypothetical Economies,each

question 18

Multiple Choice

The diagram below shows alternate paths for two hypothetical economies,each starting with GDP of $1 billion.Assume that Area 1 is equal to Area 2. FIGURE 25-1 Refer to Figure 25-1.Which of the following statements about Economies A and B is correct?

• A)Economy A will sustain higher material living standards than Economy B in the long run.
• B)Economies A and B will have equal material living standards beginning at Year 0.
• C)Economy B will sustain higher material living standards than Economy A in the long run.
• D)Economies A and B will have equal material living standards beginning at Year X.
• E)Economies A and B will have equal material living standards beginning at Year Y.

---

Definitions:

Fearful

Experiencing fear, a primary emotional response to perceived threats or danger.

Cluster C

Anxious or fearful personality disorders; “worried” or “sad.”

Diagnosed

The process of identifying a disease or disorder based on a systematic evaluation of physical signs, symptoms, history, and often diagnostic tests.

Specific Requirements

Particular needs or conditions that are required to be met for a certain task, project, or situation.