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Refer to the Above Diagram for a Private Closed Economy

Question 40

Multiple Choice

Refer to the above diagram for a private closed economy.At the $400 level of GDP: A) aggregate expenditures exceed GDP with the result that GDP will rise. B) consumption is $350 and planned investment is zero so that aggregate expenditures are $350. C) consumption is $300 and planned investment is $50 so that aggregate expenditures are $350. D) consumption is $300 and actual investment is $100 so that aggregate expenditures are $400. Refer to the above diagram for a private closed economy.At the $400 level of GDP:


A) aggregate expenditures exceed GDP with the result that GDP will rise.
B) consumption is $350 and planned investment is zero so that aggregate expenditures are $350.
C) consumption is $300 and planned investment is $50 so that aggregate expenditures are $350.
D) consumption is $300 and actual investment is $100 so that aggregate expenditures are $400.

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