Use the Figure Below to Answer the Following Questions

question 2

Multiple Choice

Use the figure below to answer the following questions.

Figure 27.2.1
There are no exports or imports in this economy.
-Refer to Figure 27.2.1. When real GDP is equal to Yc, then

• A)actual expenditure is less than planned expenditure.
• B)actual expenditure is greater than planned expenditure.
• C)planned expenditure is equal to actual expenditure.
• D)the economy is in equilibrium.
• E)real GDP increases.

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Definitions:

Structural Unemployment

People who remain unemployed for long periods of time, often with little hope of finding new jobs like their old ones.

Specialized Knowledge

Expertise or skills focused on a specific branch of study, occupation, or field of endeavor, distinguished by its depth and proficiency.

Cost-Push Inflation

Inflation caused by an increase in prices of inputs like labour, raw material, etc., leading to a decrease in the supply of these goods.

Raw Materials

Fundamental materials that are used in the production process to create goods and products.