-Refer to the Above Diagram for a Private Closed Economy

question 131

Multiple Choice

-Refer to the above diagram for a private closed economy.At the $400 level of GDP:

• A) aggregate expenditures exceed GDP with the result that GDP will rise.
• B) consumption is $350 and planned investment is zero so that aggregate expenditures are $350.
• C) consumption is $300 and planned investment is $50 so that aggregate expenditures are $350.
• D) consumption is $300 and actual investment is $100 so that aggregate expenditures are $400.

---

Definitions:

Wisdom Of Crowds

The collective opinion of a group of individuals rather than a single expert, often more accurate than the majority of individual opinions.

Diversity Of Opinion

The presence of varying viewpoints and perspectives within a group or discussion.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing the overall operations and resources, and serving as the main point of communication between the board of directors and corporate operations.

Risky Shift

A tendency for groups to take greater risks than the same individuals (on average) would have decided to take individually.