Refer to Figure 1 Below

question 24

Multiple Choice

Refer to Figure 1 below.If the vertical distance labelled Z represents a deflationary gap then which of the following statements is true? Figure 1

• A)Y₂ represents the full employment level of output and total expenditure must be reduced from C+I+G+(X-
• M)₂ to C+I+G+(X-
• M)₁ in order to increase output and employment.
• B)Y₁ represents the full employment level of output and total expenditure must be reduced from C+I+G+(X-
• M)₂ to C+I+G+(X-
• M)₁ in order to increase output and employment.
• C)Y₂ represents the full employment level of output and total expenditure must be increased from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ in order to increase output and employment.
• D)Y₁ represents the full employment level of output and total expenditure must be increased from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ in order to increase output and employment.

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Definitions:

United States

A country in North America consisting of 50 states and a federal district, known for its significant cultural and economic influence globally.

Group Size

A factor that affects the dynamics and outcomes of social interactions, influencing behavior, communication, and cohesion within groups.

Ally

A person or entity that provides support or assistance, often in a partnership or coalition.

Influence

The ability to influence the personality, growth, or actions of an individual or entity.