Refer to the Following Figure When Answering the Following Questions

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 5.3: Solow Diagram
-In Figure 5.3, at K₁, the difference between and
Is ________, and the difference between Y and
Is ________.

A) output; investment
B) net investment; consumption
C) gross investment; consumption
D) output; consumption
E) depreciation; gross investment