Figure 83 Alt Text for Figure 8

question 154

Multiple Choice

Figure 8.3 Alt text for Figure 8.3: In figure 8.3, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.3: The x-axis is labelled, real GDP, Y (trillions of 2002 dollars) .The y-axis is labelled, real aggregate expenditure, AE (trillions of 2002 dollars) .Line Y = AE, originates at the vertex and slopes up to the top right corner.Line AE1, begins a little less than half way along the x-axis and slopes up to the end of the x-axis.Both these lines intersect at point K, approximately 3 quarters of the way along both lines.Point J is plotted a little less than half way along line AE1, to the left of point K.Point L is marked close to the right end of the line AE1, to the right of point K.
-Refer to Figure 8.3.At point J in the figure above, which of the following is true?

• A)Aggregate expenditure is less than GDP.
• B)The economy has achieved macroeconomic equilibrium.
• C)Actual inventories are less than planned inventories.
• D)GDP will be decreasing.
• E)unemployment will be rising.

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Definitions:

Federalists

Members of a political group in the early United States advocating for a strong federal government and the ratification of the Constitution.

Emancipation

The act of being freed from slavery, bondage, or other forms of control or oppression.

Erie Canal

A significant waterway in New York, opened in 1825, that connected the Great Lakes with the Atlantic Ocean, facilitating trade and settlement.

Farmers Migrating

The movement of agricultural workers and farmers from rural areas to urban ones or from one country to another, often in search of better farming opportunities or in response to environmental and economic pressures.