The Figure Given Below Shows the Income-Expenditure Model

question 127

Multiple Choice

The figure given below shows the income-expenditure model.Which of the following best describes the situation at point B?

• A)Consumption expenditure exceeds disposable income
• B)Real GDP exceeds aggregate expenditure
• C)Aggregate expenditure is exactly equal to real GDP
• D)Aggregate expenditure exceeds real GDP
• E)Producers experience an unexpected accumulation of inventory

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Definitions:

Network Structures

A pattern of connections and relationships between individuals, groups, or entities, often visualized in organizational or communication contexts.

Overhead

The ongoing administrative and operational costs not directly tied to the production of goods or services in a business.

Operating Efficiency

The ability of an organization to minimize its input costs while maximizing its output without compromising quality.

Boundaryless Sourcing

A business strategy that involves procuring goods or services from any supplier globally without geographical restrictions.