1. Assign the correct label to each of the following points (do not abbreviate your answer)

1. .............................. (2 marks)

1. ........................ (2 marks)

1. ........................ (2 marks)

1. .......................... (2 marks)

1. State and define the economic situation being demonstrated in the graph above?

(3 marks)

1. State and explain two (2) approaches that can be used by policymakers to correct the above economic situation above.(4marks)

1. Given the Marginal Propensity to Consume (MPC) is equal to 0.8, calculate the dollar ($) value of the expenditure needed to "correct" the economic situation above.(5 marks)