Use the Figure Below to Answer the Following Questions

question 144

Multiple Choice

Use the figure below to answer the following questions.

Figure 27.2.1
There are no exports or imports in this economy.
-Refer to Figure 27.2.1. When real GDP is equal to Yb, then

• A)actual expenditure is less than planned expenditure.
• B)actual expenditure is greater than planned expenditure.
• C)planned expenditure is equal to actual expenditure.
• D)real GDP increases.
• E)real GDP decreases.

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Definitions:

Per-Unit Cost of Production

The total expense incurred in producing a single unit of a product, including both fixed and variable costs.

Economies of Scale

Refers to the cost advantage experienced by an entity due to expansion in production, leading to lower per-unit costs.

Diseconomies of Scale

The phenomenon where production costs per unit increase as the scale of operation or output increases.