Consider the following diagram where is national output; and are injections and
withdrawals, respectively; is domestic consumption; and is the expenditure
function. Which of the following statements is correct in equilibrium? (3 marks)
AInjections can be calculated as the vertical distance ‘gp’.
BWithdrawals can be calculated as the vertical distance ‘gp’.
CBoth (a) and (b).
DNone of the above.
withdrawals, respectively; is domestic consumption; and is the expenditure
function. Which of the following statements is correct in equilibrium? (3 marks)
AInjections can be calculated as the vertical distance ‘gp’.
BWithdrawals can be calculated as the vertical distance ‘gp’.
CBoth (a) and (b).
DNone of the above.