Which of the Following Statements Is Correct for a Private

question 8

Multiple Choice

Which of the following statements is correct for a private closed economy?

• A) Saving equals planned investment only at the equilibrium level of GDP.
• B) All levels of GDP where planned investment exceeds saving will be too high for equilibrium.
• C) Planned and actual investment are identical at all possible levels of GDP.
• D) Saving equals actual investment only at the equilibrium level of GDP.

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Definitions:

Marginal Revenue Product

The extra income produced by utilizing an additional unit of a resource or production factor.

MRP Curve

The Marginal Revenue Product curve, representing the additional revenue generated by hiring one more unit of a resource in the factor market.

Wage Rate

The standardized payment given to employees for their labor, typically denoted as an amount per hour or per year.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource, factor, or input.