The Equilibrium Level of GDP in a Private Closed Economy

question 140

Multiple Choice

The equilibrium level of GDP in a private closed economy is where:

• A)MPC = APC.
• B)unemployment is about 3 percent of the labor force.
• C)planned consumption equals saving.
• D)saving equals planned investment.

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Definitions:

Eminent Domain

The authority of a government to take private property for public purposes, provided the owner is compensated.

Private Property

Land or belongings owned by individuals or corporations rather than by the government or community.

Public Use

The concept that property or services are available for use by the general public, often justifying government action such as eminent domain.

Restrictive Covenant

refers to clauses in contracts that limit one party from engaging in certain activities that could compete with or harm the other party, often found in employment and real estate agreements.