-The Figure Above Shows the U

question 28

Multiple Choice

-The figure above shows the U.S. production function. From 1986 to 2008 the United States experienced major advances in technology as well as an increase in the working- age population. The combined effect can best be shown by a

• A) movement from point W to point X.
• B) movement from point W to point Z.
• C) movement from point Y to point X.
• D) movement from point Y to point Z.

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Definitions:

Domestic Investment

The total amount of money that is invested within a country's borders by both the public and private sectors.

U.S. Saving

The portion of disposable income that is not spent on consumption of goods and services in the United States, but set aside for future use.

U.S. Investment

The action or process of allocating resources, typically financial, into investment products or opportunities within the United States, seeking growth or income.

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, indicating an outflow of domestic currency to foreign markets.