The Letters Y, C, I_g, X, and M Stand for GDP

question 147

Multiple Choice

The letters Y, C, I_g, X, and M stand for GDP, consumption, gross investment, exports, and imports respectively.Figures are in billions of dollars.C = 26 + .75Y I_g = 60
X = 24
M = 10
The multiplier for the above economy is:

• A)4.60.
• B)3.33.
• C)5.00.
• D)4.00.

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Definitions:

Merchandising Companies

Enterprises engaged in the business of buying merchandise from manufacturers and selling it to customers, typically involving retail or wholesale operations.

Manufacturing Companies

Businesses that produce goods from raw materials through the use of manual labor or machinery, often involving assembly processes.

Cost of Goods Manufactured

The total production cost of goods completed during an accounting period, including labor, material, and overhead costs.

Income Statement

A financial statement showing the company's revenues, expenses, and profits over a specific period.