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

question 44

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. When total injections equal $20, the equilibrium level of real GDP is:

• A) $100.
• B) $200.
• C) $300.
• D) $400.
• E) $500.

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Definitions:

Price Fixing

A restraint of trade in which two or more competitors agree to set prices for a product or service.

Category

A class or division of items or people with shared characteristics, used for purposes of organization, analysis, or classification.

Antitrust Law

Legislation aimed at preventing anti-competitive practices, monopolies, and other actions that restrict or distort market competition.

Economic Efficiency

A situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.