Refer to the Diagram for a Private Closed Economy

question 82

Multiple Choice

Refer to the diagram for a private closed economy. At the $400 level of GDP,

• A) aggregate expenditures exceed GDP, with the result that GDP will rise.
• B) consumption is $350 and planned investment is zero, so aggregate expenditures are $350.
• C) consumption is $300 and planned investment is $50, so aggregate expenditures are $350.
• D) consumption is $300 and actual investment is $100, so aggregate expenditures are $400.

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Definitions:

Reduce

To decrease in size, quantity, or intensity, often in reference to waste management or minimizing resource consumption.

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The process of adapting to significant changes in one's life, which can be a source of stress.

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A duration spent outside of one's home or workplace dedicated to resting, unwinding, or journeying.

Holmes And Rahe

Psychologists who developed a scale to measure stress based on major life events and their impact on an individual's health.