-In the Above Figure, AE₀ is the Aggregate Planned Expenditure

question 26

Multiple Choice

-In the above figure, AE₀ is the aggregate planned expenditure curve and then investment increases by an additional $3 trillion. As a result, the new equilibrium GDP will be

• A) $12 trillion.
• B) $6 trillion.
• C) $3 trillion.
• D) None of the above answers is correct.

Evaluate the influence of demand shifts on the social and private costs associated with common property resources.

Explain the difference between marginal social cost and private cost in the context of common property resources.

Apply principles of economic theory to examine the effects of public goods on social welfare, including understanding free-rider problems.

Differentiate between rival and nonrival, as well as exclusive and nonexclusive goods, identifying examples of each.