Refer to the Above Diagram for a Private Closed Economy

question 234

Multiple Choice

Refer to the above diagram for a private closed economy.At the $400 level of GDP:

• A)aggregate expenditures exceed GDP with the result that GDP will rise.
• B)consumption is $350 and planned investment is zero so that aggregate expenditures are $350.
• C)consumption is $300 and planned investment is $50 so that aggregate expenditures are $350.
• D)consumption is $300 and actual investment is $100 so that aggregate expenditures are $400.

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Definitions:

Total Cost Curve

A graphical representation that illustrates how the total cost of producing a good changes in relation to the quantity produced, considering both fixed and variable costs.

Diseconomies of Scale

Diseconomies of scale occur when a firm or business grows so large that the costs per unit increase, leading to inefficiency and higher production costs.

Total Revenue

The entire sum of funds a business gains from selling products or offering services over a specified timeframe.

Total Cost

The complete amount of money spent by a business to produce a specific quantity of goods or services, including both fixed and variable costs.