Refer to the Above Diagram for a Private Closed Economy

question 135

Multiple Choice

Refer to the above diagram for a private closed economy.At the $100 level of GDP:

• A)aggregate expenditures will exceed GDP, causing GDP to fall.
• B)planned investment will exceed saving, but actual investment will be equal to saving.
• C)households will consume more than their income.
• D)saving will be $40.

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Definitions:

Past Events

Occurrences or situations that have taken place before the present time, contributing to the current state of affairs.

Core of Motivation

The central or primary force that drives an individual to act in order to satisfy needs, achieve goals, or resolve conflicts.

Instincts

Innate, biologically determined behavior patterns common to all individuals of a species that are driven by the need to fulfill physiological requirements or survival.

Personality Theory

A systematic approach to understanding the facets of human personality, including its processes, development, and variations among individuals.