The Figure Given Below Represents the Leakages and Injections of an Economy

question 114

Multiple Choice

The figure given below represents the leakages and injections of an economy. Figure 10.6 Refer to Figure 10.6.If 0L represents potential GDP, the GDP gap can be closed by increasing autonomous expenditures by an amount equal to line segment _____.

• A)NM
• B)NL
• C)ML
• D)OK
• E)QK

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Definitions:

Human Agency

The capacity of individuals to act independently and to make their own free choices.

Marx and Engels

Karl Marx and Friedrich Engels were 19th-century philosophers and economists known for their development of communist theory, criticizing capitalism and proposing a classless society.

Capitalism

An economic system characterized by private or corporate ownership of goods and the means to produce them, with the distribution of goods being determined mainly through competition in the marketplace.

Social Revolution

A profound, rapid, and often violent shift in the structure and nature of a society, typically involving the redistribution of power and resources.