The Figure Given Below Shows the Income-Expenditure Model

question 71

Multiple Choice

The figure given below shows the income-expenditure model.At point C,_____.

• A)consumption expenditure exceeds disposable income
• B)producers experience an unexpected loss of inventory
• C)aggregate expenditure is exactly equal to real GDP
• D)real GDP exceeds aggregate expenditure
• E)producers experience an unexpected accumulation of inventory

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Definitions:

Investee

The entity in which an investor holds an interest, often evidenced through ownership of securities or equity.

Voting Common Stock

A class of stock that grants the holder the right to vote on corporate matters at shareholders' meetings.

Goodwill

An invisible asset that emerges when purchasing a business for a price that is above the fair valuation of its net identifiable assets.

Net Loss

A financial situation where a company's total expenses exceed its total revenues, resulting in a negative profit.