The Figure Given Below Shows the Aggregate Expenditure Curve of an Open

question 38

Multiple Choice

The figure given below shows the aggregate expenditure curve of an open economy. Figure 10.1 In the figure:
C₁: Consumption
I₁: Investment
G₁: Government spending
X₁: Net Exports
Consider the economy described in Figure 10.1.Which of the following is true if the real GDP is equal to 0H?

• A)Aggregate expenditures are greater than total income.
• B)All economic resources are being used efficiently.
• C)Households are dissaving an amount equal to DC.
• D)Businesses accumulate unwanted inventories.
• E)Unplanned investment will decline.

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Definitions:

Unanimity

A state of agreement by all parties or members involved in a decision, often required in certain decision-making processes to ensure total consensus.

Groupthink

A phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Freedom from Office Politics

A work environment where employees can focus on their tasks and responsibilities without the need to engage in or be affected by internal competition, manipulation, or personal conflicts.

Job Satisfaction

The level of contentment employees feel regarding their job, including aspects like work environment, pay, and duties.