The Figure Given Below Shows the Income-Expenditure Model

question 133

Multiple Choice

The figure given below shows the income-expenditure model.At point C,_____.​ ​
Figure 9.1

• A)consumption expenditure exceeds disposable income
• B)producers experience an unexpected loss of inventory​
• C)aggregate expenditure is exactly equal to real GDP​
• D)real GDP exceeds aggregate expenditure​
• E)producers experience an unexpected accumulation of inventory​

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Definitions:

Externally Motivated

Driven by external rewards or pressures rather than personal interest or intrinsic desire.

Impoverished Background

A situation where an individual or family lives in a state of financial hardship or poverty, lacking sufficient resources for a standard living.

Confirmation Bias

The predisposition to look for, comprehend, prioritize, and recollect facts in a way that supports one’s own prior convictions or hypotheses.

Impoverished Background

Referring to a lack of financial resources and economic stability in one's family or upbringing, often impacting access to opportunities.