-In the Above Table, C Is Consumption Expenditure, I Is

question 43

Multiple Choice

$$\begin{array} { | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Real } \\\text { GDP }\end{array} & C & I & G & X & M \\\hline 100 & 75 & 25 & 95 & 10 & 1 \\\hline 200 & 150 & 25 & 95 & 10 & 2 \\\hline 300 & 225 & 25 & 95 & 10 & 3 \\\hline 400 & 300 & 25 & 95 & 10 & 4 \\\hline 500 & 375 & 25 & 95 & 10 & 5 \\\hline 600 & 450 & 25 & 95 & 10 & 6 \\\hline 700 & 525 & 25 & 95 & 10 & 7 \\\hline 800 & 600 & 25 & 95 & 10 & 8 \\\hline 900 & 675 & 25 & 95 & 10 & 9 \\\hline 1000 & 750 & 25 & 95 & 10 & 10 \\\hline\end{array}$$
-In the above table, C is consumption expenditure, I is investment, G is government expenditure, X is exports, and M is imports. All entries are in dollars. What is the unplanned inventory change when GDP is equal to $400?

• A) -$5
• B) $5
• C) $26
• D) -$26

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and free entry and exit.

Free Entry

A market condition where there are no barriers to entering an industry or market, allowing any firm to compete without restrictive licenses, patents, or regulations.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and the absence of barriers to entry, leading to optimal price and output levels.

Excessively High Profits

Profits that significantly exceed the normal expected return, often seen as unreasonable or indicative of limited competition.