Refer to the Graph Above for a Private Closed Economy

question 9

Multiple Choice

Refer to the graph above for a private closed economy. When output or income is $350 billion there will be:

• A) Equilibrium GDP
• B) Saving exceeding planned investment
• C) Unplanned increases in inventories
• D) Unplanned decreases in inventories

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method or decision.

Improbable Events

Improbable events are occurrences with a low likelihood of happening, often surprising or unforeseen due to their rarity.

Confirmation Bias

The proclivity to pursue, decode, cherish, and memorize information that reinforces one's preconceived beliefs or assumptions.

Misdiagnosis

The act of incorrectly identifying a disease or condition, leading to potential delay in appropriate treatment or unnecessary anxiety.