The Figure Given Below Represents the Leakages and Injections in an Economy.?Figure

question 62

Multiple Choice

The figure given below represents the leakages and injections in an economy.?Figure 10.2??In the figure:?I, I1: Investment;?G: Government spending;?EX, EX1: Exports;?T: Taxes; and?M: Imports.

-Refer to Figure 10.2. A decline in total injections, from $20 to $10:

• A) will cause equilibrium income to rise to $400.
• B) will result in a disequilibrium of $200 in the economy.
• C) will cause the total leakages curve to shift inward.
• D) will cause equilibrium income to fall to $300.
• E) will not affect equilibrium income.

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Definitions:

Rounded

Adjusted to a simpler or more general form, often to the nearest whole number.

Median

The middle value in a sorted list of numbers, providing a measure of central tendency that is not skewed by extreme values.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of numbers in the set.

Quotient

The result obtained by dividing one quantity by another.