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

question 43

Multiple Choice

The figure given below represents the leakages and injections in an economy.
Figure 10.6

-Refer to Figure 10.6. If 0L represents potential GDP, then the GDP gap can be closed by increasing autonomous expenditures by an amount equal to the line segment _____.

• A) NM
• B) NL
• C) ML
• D) OK
• E) QK

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Definitions:

After-Acquired Property

Property acquired by a debtor after the security arrangement is made.

Livestock

Domesticated animals raised in an agricultural setting to produce labor and commodities such as meat, eggs, milk, fur, leather, and wool.

Inventory

Consists of the goods and materials held by a business for the purpose of resale or production.

Consumer Good

A product intended for personal use or consumption by the general public.