Use the Figure Below to Answer the Following Questions

question 125

Multiple Choice

Use the figure below to answer the following questions.

Figure 27.2.2
The economy depicted does not engage in international trade and has no government. Planned aggregate expenditure (AE) is equal to the sum of consumption expenditure (C) and investment (I) .
-Refer to Figure 27.2.2. When real GDP is $100 billion,

• A)real GDP is less than aggregate planned expenditure, and firms increase production.
• B)aggregate planned expenditure is greater than real GDP, and firms decrease production.
• C)real GDP is greater than aggregate planned expenditure, and firms decrease production.
• D)aggregate planned expenditure equals real GDP, and the economy is in equilibrium.
• E)aggregate planned expenditure is less than real GDP, and firms increase production.

---

Definitions:

Selected Specialization

A strategy where a business focuses on a particular market niche or product category to gain a competitive advantage.

Product Specialization

A strategy focusing on the production and sale of a limited range of products or services to fulfill specific consumer needs and preferences.

Full Market Coverage

A strategy where a company aims to serve all customer segments in the market with its product offerings to maximize reach and sales.

Differentiated Marketing

A marketing strategy in which a company targets multiple market segments with specific offerings for each.