Looking at the Graph Shown, the Structural Adjustments Necessary to Bring

question 31

Multiple Choice

Looking at the graph shown, the structural adjustments necessary to bring the economy back to domestic and international equilibrium include:

• A)an increase in the U.S. exchange rate.
• B)an increase in the U.S. wages and costs of production.
• C)an increase in aggregate demand.
• D)a fall in the U.S. exchange rate.

---

Definitions:

Ordinary Repairs

Expenditures to maintain the operating efficiency and productive life of the unit.

Capital Expenditures

Capital employed by a business to buy or enhance tangible assets like land, factories, or machinery to boost long-term business activities.

Period of Ownership

The duration for which an asset is owned by an individual or entity, affecting capital gains for tax purposes.

Estimated Useful Life

The expected timeframe during which an asset is likely to be functional and useful for its intended purpose before it becomes obsolete.