Use the Following Graph to Answer the Following Questions

question 158

Multiple Choice

Use the following graph to answer the following questions.

-Suppose that the level of capital is 100,000,the depreciation rate is 5 percent,and investment is equal to 5,000.In this case,you would expect that

• A) real gross domestic product will increase.
• B) real gross domestic product will decrease.
• C) real gross domestic product will remain unchanged.
• D) the steady state value of capital will increase.
• E) the steady state value of capital will decrease.

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Definitions:

Income Responsiveness

The degree to which demand for a product or service changes in response to changes in consumer income.

Income Elasticity of Demand

A metric that gauges the sensitivity of demand for a product to shifts in the income of consumers.

Weekly Income

The total amount of earnings received by an individual or entity over the span of a week.

Bars of Chocolate

Solid blocks of chocolate that can vary in cocoa content, sweetness, and added ingredients, enjoyed as confectionary treats.