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Refer to the Graph Above for a Private Closed Economy

Question 23

Multiple Choice

Refer to the graph above for a private closed economy. At the $150-billion level of GDP: A) Aggregate expenditures are less than real GDP, so GDP will rise B) Aggregate expenditures are more than real GDP, so GDP will fall C) Aggregate expenditures are more than real GDP, so GDP will rise D) Aggregate expenditures will be equal to GDP, so there will be no change in GDP Refer to the graph above for a private closed economy. At the $150-billion level of GDP:


A) Aggregate expenditures are less than real GDP, so GDP will rise
B) Aggregate expenditures are more than real GDP, so GDP will fall
C) Aggregate expenditures are more than real GDP, so GDP will rise
D) Aggregate expenditures will be equal to GDP, so there will be no change in GDP

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