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

question 346

Multiple Choice

$$\begin{array} { | l | l | l | l | l | } \hline \begin{array} { l } \text { Real } \\\text { GDP }\end{array} & C & I & G & X - M \\\hline 2500 & 1430 & 540 & 400 & 90 \\\hline 2400 & 1360 & 540 & 400 & 100 \\\hline 2300 & 1290 & 540 & 400 & 110 \\\hline 2200 & 1220 & 540 & 400 & 120 \\\hline 2100 & 1150 & 540 & 400 & 130 \\\hline\end{array}$$
-In the above table, C is consumption expenditure, I is investment, G is government expenditure, and X - M is net exports. All entries are in dollars. The equilibrium level of real GDP is

• A) $2,400.
• B) $2,300.
• C) $2,500.
• D) $2,200.

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Definitions:

Economic Rents

Earnings exceeding the minimum amount necessary to keep a factor of production in its current use, often associated with imperfect competition or unique resources.

Land Ownership

The legal right to possess, use, and manage a piece of land.

Compound Interest

The accumulation of money that builds over time in an investment or interest-bearing account as new interest is earned on previous interest that is not withdrawn.

Savings Account

A deposit in a commercial bank or thrift institution on which interest payments are received; generally used for saving rather than daily transactions; a component of the M2 money supply.