Use the Information Below to Answer the Following Questions

question 56

Multiple Choice

Use the information below to answer the following questions.
Fact 11.5.2
An economy has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y.
-Refer to Fact 11.5.2.What is equilibrium real GDP for this economy?

• A)550
• B)55
• C)27.5
• D)70
• E)110

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Definitions:

Enforceable Oral Contract

A verbal agreement that is legally binding and can be enforced in a court of law, under certain conditions.

Assets

Resources with economic value owned by an individual, company, or country, expected to provide future benefits.

Standard Construction Rule

In legal interpretation, this rule dictates that ambiguous contract terms should be construed against the drafter.

Prewritten Contract

A standardized legal document with set terms and language used in similar transactions, which is not specifically tailored to the needs of the parties involved in a particular deal.