Refer to the Diagram $\left( C + I _ { g } + X _ { n 2 } \right)$

question 23

Multiple Choice

Refer to the diagram. If aggregate expenditures in this economy are ( $\left( C + I _ { g } + X _ { n 2 } \right)$ ) , then the equilibrium
Levels of GDP and aggregate expenditures will be

• A) 0A and 0E, respectively.
• B) 0B and 0F, respectively.
• C) 0A and AH, respectively.
• D) 0D and DJ, respectively.

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Definitions:

Money Supply

The aggregate of cash and banking deposits that constitute the financial assets within an economy at a particular time.

Medium Of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties, commonly accepted in the form of money.

Barter

The exchange of goods and services between parties without the use of money as a medium of exchange.

Bank Credit Cards

Financial instruments issued by banks that allow users to borrow funds from a pre-approved limit to purchase items or withdraw cash.