Use the Information Below to Answer the Following Questions

question 137

Multiple Choice

Use the information below to answer the following questions.
Fact 11.5.1
An economy has a consumption function of C = 10 + 0.8Y, investment equal to 6, government expenditure equal to 10, exports equal to 10, and an import function of M = 0.1Y.
-Refer to Fact 11.5.1.If autonomous consumption increases by 10, what is the new equilibrium real GDP for this economy?

• A)86.67
• B)460
• C)120
• D)153.33
• E)230

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Definitions:

Industries

Industries refer to the various sectors of an economy characterized by the production and manufacture of goods or services within a specific branch.

Technology Dependent

Refers to entities or individuals that heavily rely on technology for operations, functionalities, or daily living.

Improvements

Refers to enhancements or upgrades made to a property or a process that increase its value, efficiency, or usefulness.

Existing Levels

The current state or condition of something, often used to describe the intensity, amount, or degree of an element or entity.