Figure 83 Alt Text for Figure 8

question 8

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

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Definitions:

Digestive System

The series of organs and glands responsible for the breakdown and absorption of food to extract necessary nutrients.

Respiratory System

The network of organs and tissues that help you breathe, including the lungs, trachea, and nasal passages.

Lymph

Fluid in the lymph vascular system.

Elephantiasis

A tropical disease caused by parasitic worms, leading to severe swelling in the limbs and genitals.