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 costs of economic growth are reflected in this diagram?
Definitions:
Yields
The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage.
T-Bill
Short for Treasury Bill, a short-term government securities issued with a maturity of less than one year, considered a safe investment.
Interest Rates
They are the charges lenders impose on borrowers for the use of financial assets, restated here to highlight their critical role in finance and borrowing.
Simple Interest
Interest is calculated merely on the principal or on what part of the principal is still owed.
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