Table 13-3 All Figures in Billions of Base-Year Dollars

question 76

Multiple Choice

Table 13-3
All figures in billions of base-year dollars

-Refer to Table 13-3. Suppose the equilibrium level of real GDP at the prevailing price is $500 billion below potential real GDP. All else constant, by how much should autonomous aggregate expenditures be increased to reach potential output?

• A) $150 billion
• B) $200 billion
• C) $400 billion
• D) $500 billion

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Definitions:

Rounded Shapes

Forms or outlines that are smooth and curved without sharp angles or edges, often formed by erosion or weathering processes in nature.

Karst Terrain

A landscape formed from the dissolution of soluble rocks such as limestone, dolomite, and gypsum, characterized by underground drainage systems with sinkholes, caves, and springs.

Evaporite Rocks

Sedimentary rocks formed by the precipitation of minerals from evaporating water, typically found in arid environments.

Limestone

Limestone is a sedimentary rock composed mainly of calcium carbonate, used in the construction industry and for producing lime, cement, and other materials.