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

question 7

Multiple Choice

The figure given below represents the leakages and injections in an economy. Figure 10.2 In the figure:
I, I₁: Investment;
G: Government spending;
EX, EX₁: Exports;
T: Taxes;and
M: Imports.
Refer to Figure 10.2.When total injections equal $20, the equilibrium level of real GDP is:

• A)$100.
• B)$200.
• C)$300.
• D)$400.
• E)$500.

---

Definitions:

Plant Size

The scale or capacity of a factory or production facility, often measured in terms of productive capability or physical dimensions.

Diseconomies of Scale

An economic concept where increasing production results in higher per unit costs.

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.

Plant Sizes

The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.