-Refer to the Above Diagram Which Applies to a Private

question 49

Multiple Choice

-Refer to the above diagram which applies to a private closed economy.If gross investment increases from I_g1 to I_g2,the equilibrium GDP will:

• A) decrease by KD.
• B) increase by HJ.
• C) increase by KD.
• D) increase by GH.

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Definitions:

Surfactant

A substance that reduces surface tension, in biological systems, it primarily refers to a substance in the lungs that prevents the air sacs from collapsing.

Lanugo

Fine, soft hair that covers the body of a fetus, which is usually shed before birth.

Cleavage

A process of cell division in the early embryonic stage that leads to the formation of a multicellular embryo.