The Figure Given Below Shows the Aggregate Expenditure Curve of an Open

question 12

Multiple Choice

The figure given below shows the aggregate expenditure curve of an open economy.
Figure 10.1
In the figure:
C₁: Consumption
I₁: Investment
G₁: Government spending
X₁: Net Exports
-According to Figure 10.1, the economy will expand when aggregate expenditures are at:

• A) point D.
• B) point A.
• C) point B.
• D) point C.
• E) point E.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but does not have majority control.

Statement of Comprehensive Income

A financial statement that shows all changes in equity during a period except those resulting from investments by and distributions to equity investors.

Voting Shares

Shares that grant the holder the right to vote on company matters, such as electing the board of directors or making decisions affecting the company's policies.

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, essentially representing the owners' equity in a corporation.