The Table Below Shows Aggregate Values for a Hypothetical Economy

question 9

Multiple Choice

The table below shows aggregate values for a hypothetical economy.Suppose this economy has real GDP equal to potential output. TABLE 25-3 Refer to Table 25-3.What is the level of combined budget surpluses of all levels of government in this economy?

• A)$50
• B)$100
• C)$500
• D)-$200
• E)-$500

---

Definitions:

Desired Investment Spending

The level of spending on new physical assets like buildings and machinery that firms wish to undertake, given their expectations for future growth and profitability.

Supply Of Loanable Funds Curve

A graphical representation showing the relationship between the interest rate and the total amount of savings available for lending in the financial market.

Demand For Loanable Funds Curve

The demand for loanable funds curve illustrates the relationship between the interest rate and the quantity of loanable funds demanded by borrowers, showing how borrowing can decrease as interest rates rise.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.