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The figure below shows three hypothetical situations for U.S. gross domestic product (GDP) in trillions of dollars. GDP is defined as the sum of consumption,

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The figure below shows three hypothetical situations for U.S. gross domestic product (GDP) in trillions of dollars. GDP is defined as the sum of consumption, investment, government purchases, and net exports. Assume that the price level is 125 at Situation (1), 107 at Situation (2), and 113 at Situation (3). [Click here to open a PDF version of the bar graph in another browser window.] aConsumption aInvestment aGovernment Purchases aNet Exports The U.S. economy is currently at Situation (1). A change occurs that moves the U.S. economy to Situation (3). Which of the answer choices best describes the change that occurs in the U.S. economy? Digital computing and mobile technology increase worker productivity. New single-family home construction decreases substantially, an indication of declining consumer incomes. Government regulations decrease such that opening a business has dropped to a low of 35 days. A continuing period of deflation appreciates the Japanese yen, increasing Japan's GDP and its import of goods from the U.S. The figure below shows three hypothetical situations for U.S. gross domestic product (GDP) in trillions of dollars. GDP is defined as the sum of consumption, investment, government purchases, and net exports. Assume that the price level is 125 at Situation (1), 107 at Situation (2), and 113 at Situation (3). [Click here to open a PDF version of the bar graph in another browser window.] aConsumption aInvestment aGovernment Purchases aNet Exports The U.S. economy is currently at Situation (1). A change occurs that moves the U.S. economy to Situation (3). Which of the answer choices best describes the change that occurs in the U.S. economy? Digital computing and mobile technology increase worker productivity. New single-family home construction decreases substantially, an indication of declining consumer incomes. Government regulations decrease such that opening a business has dropped to a low of 35 days. A continuing period of deflation appreciates the Japanese yen, increasing Japan's GDP and its import of goods from the U.S

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