Refer to the Above Diagram, Which Applies to a Private

question 4

Multiple Choice

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

• A)FE.
• B)AB.
• C)AD.
• D)GE.

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Definitions:

Expected Revenue

The predicted amount of money that a business will bring in from its operations or activities, typically within a certain period.

English Auction

A method of auctioning in which bidders publicly submit increasingly higher bids until no higher bid is offered, and the highest bidder wins the item.

Reservation Price

The highest price a consumer is willing to pay for a particular good or service, reflecting the limit of their willingness to purchase.

Expected Revenue

The total amount of money anticipated to be received from sales of goods or services, based on expected sales volumes and prices.