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

question 32

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

-Consider the economy described in Figure 10.1. Which of the following is true if the real GDP is equal to 0H?

• A) Aggregate expenditures are greater than total income, when the real GDP is equal to OH.
• B) All economic resources are being used efficiently, when the real GDP is equal to OH.
• C) Households are dissaving an amount equal to DC, when the real GDP is equal to OH.
• D) Businesses accumulate unwanted inventories, when the real GDP is equal to OH.
• E) Unplanned investment decline, when the real GDP is equal to OH.

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Definitions:

Biophysical Developmental Theories

Theories that explain human growth and development based on biological and physical processes.

Cognitive Development

The process by which individuals perceive, think, and gain understanding of their world through the interaction and influence of genetic and learned factors.

Physical Body

The material or biological aspect of a person, encompassing their physical structure and organ systems.

Cognitive Development

Cognitive development refers to the progression and changes in cognitive abilities and processes, such as thinking, reasoning, problem-solving, and memory, throughout a person's life.