If an Economy Is Operating at a Point on the C

question 71

Multiple Choice

If an economy is operating at a point on the C + I line that lies above the 45-degree line

• A) the economy is in equilibrium.
• B) the C + I line shifts down.
• C) GDP will rise.
• D) unwanted inventories will accumulate.
• E) intended saving equals intended investment.

---

Definitions:

Computer Equipment

Tangible assets related to computers and technology used in the operational activities of a business, such as servers, desktops, and peripherals.

Capital Expenditures

Investments in physical assets like property, plant, and equipment, which are expected to improve a company’s future productive capacity.

Operating Efficiency

A metric that indicates the ratio of output gained to the input expended in the business process.

Extend Its Useful Life

The process of prolonging the period over which an asset can productively be used, often through maintenance or improvements.